The federal government has declined the stringent terms proposed by a consortium of six commercial banks for a new loan of Rs15 billion to the financially struggling Pakistan International Airlines (PIA).
A joint committee, formed to find a viable solution for the airline’s financial woes until privatization, has also failed to reach an agreement.
According to government sources, the consortium of banks sought sovereign guarantees, a letter of comfort, two aircraft as collateral, and a waiver from the State Bank of Pakistan (SBP) for the Rs15 billion loan. The Ministry of Finance rejected these terms, citing concerns that they favored the banks more than protecting the government’s interests.
Habib Bank Limited, National Bank of Pakistan, and Meezan Bank Limited collectively offered Rs9 billion, with Faysal Bank Limited, Bank of Punjab, and Askari Bank Limited contributing the remaining Rs6 billion.
The loan was intended to secure two confiscated aircraft of PIA and address other financial needs, with a repayment period not exceeding two years.
Caretaker Minister for Privatisation Fawad Hasan Fawad, tasked with selling PIA, has faced obstacles in the form of challenging loan conditions. The proposed terms included sovereign guarantees for half of the loan amount, acceptable to the finance ministry, a letter of comfort, two aircraft as collateral, and protection under UAE and English laws for the remaining half.
Despite offering the loan at Karachi Interbank Offered rates plus 1.5%, approximately 24% interest, the Ministry of Finance deemed the borrowing rates slightly higher.
The banks also requested a waiver from SBP’s prudential regulations, which the finance ministry declined, expressing concerns about setting a precedent for other struggling enterprises.
The banks further demanded exclusive rights to PIA revenues from flights on UAE routes, seeking guarantees for regular flight operations and uninterrupted fuel supplies. Revenues from these flights would be directed to a dedicated account for principal and interest payments. The Rs15 billion loan cannot be restructured and must be repaid on time, as per the banks’ conditions.
The joint technical committee, responsible for arranging the loan and restructuring PIA’s old debt of Rs260 billion, failed to meet its deadline, resulting in its natural conclusion. The committee, chaired by Usman Bajwa, Secretary Privatization Commission, could not submit recommendations by the December 15th deadline.
Efforts to resolve the financial challenges faced by PIA and advance its privatization agenda remain in limbo as negotiations between the government and commercial banks continue.
Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for.
This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post.
When your website or blog goes live for the first time, it is exciting. That is until you realize no one but you and your.
You are undertaking an excellent duty in sharing this type of reliable content. This is especially what I was searching for.
like your post. It is good to see you verbalize from the heart and clarity on this important subject can be easily observed…
BRUNOE QUICK H A C K CRYPTO/BITCOIN EXPERTS RECOVERY IS A LEGIT AND RELIABLE H .A .C. K. E. R.
Bitcoin recovery experts are professionals who specialize in helping individuals or organizations recover lost or inaccessible Bitcoin or other cryptocurrencies. They possess extensive knowledge of blockchain technology, cryptography, and various recovery methods. Whether someone has forgotten their password, lost their private keys, or encountered other issues that prevent them from accessing their Bitcoin, these experts employ advanced techniques to assist in the recovery process. They work closely with clients to understand the specific circumstances surrounding the loss and utilize their expertise to recover the digital assets whenever possible. Bitcoin recovery experts can be invaluable resources for those who have experienced cryptocurrency-related losses and seek professional assistance in retrieving their funds
Website; brunoequickhack . com
Gmail; brunoequickhack AT gmali . com
Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include.
Your post has those facts which are not accessible from anywhere else. It’s my humble request to u please keep writing such remarkable articles
I can’t wait to share this article with my friends. It’s a must-read for everyone.
Looking for trustworthy “home nursing services near me”? Home Patient Care Services offers skilled and experienced nurses in your local area for your convenience.
Save time with our “MOT whilst you wait” service in Farnham. Relax in our waiting area as our certified technicians conduct your inspection promptly.