Thursday , April 2 2020

39 out of 222 firms voluntarily return written-off loans

Islamabad: The Supreme Court said on Tuesday that a special bench will be formed that will  determine the amount to be paid by companies which had got loans worth billions of rupees written off by banks in 2002.

Chief Justice of Pakistan (CJP) Mian Saqib Nisar led a bench at the top court and heard a case relating to the State Bank of Pakistan (SBP) to allow commercial banks to write off non-performing loans (NPLs) under a large-scale programme that was started during the regime of former president Pervez Musharraf.

“Some people obeyed the August 12, 2018 order as 39 out of the 222 [firms] opted for the option of voluntary return of loans,” chief justice mentioned.

The bench formed will determine the amount that is to be paid by each bank. The bank said that case will be filed against the companies that have not yet returned the loans.“As banks said the loans borrowed from them are not liable to be paid, the recovered amount will be deposited in dams’ fund,” Justice Nisar commented.

Those who sided to the option of voluntary return are lucky as they are barred from mark-up and other funds. They were only asked to pay 75% of the total money they borrowed.

The hearing was dismissed by CJP until any further projected date.

It should be noted that State Bank of Pakistan started giving loads in 2002 on the basis of circular that was approved by then finance minister Shaukat Aziz.

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