Andhra Bank chairman Rajendran and SBI chairman Arundhati have made statements reiterating their stand regarding waiver of loans. This has become a cause for concern to farmers in both Telangana and Andhra Pradesh.
Naturally, the governments of both Telangana and Andhra Pradesh are in a fix as it would mean that they will not be able to fulfill the poll promise which helped them win the elections.
While the Telangana government is planning to squeeze itself out of this tricky situation by repaying the entire amount to the banks, the Andhra Pradesh government finds itself in a tight spot as the burden is too huge.
Given this background, Andhra Bank chairman’s latest statement saying that no fresh loans will be given till the entire amount is repaid has led to anxiety among the farmers.
The banks have made it clear that if they waiver the loans in both Telugu speaking states, they will face a similar problem in nine states that will soon go to polls.
So, Rajendran has made it clear that the amount needs to be cleared either by the farmers or their respective governments.
