RECORDER REPORT

ISLAMABAD: State Bank of Pakistan (SBP) has stated that restructuring or rescheduling of bank loans is taken by the banks themselves and SBP has nothing to do with it.

While briefing the Senate Standing Committee on Finance presided over by Senator Saleem Mandviwalla on discriminatory treatment being meted out to some private companies namely Omni Group, Pale, etc, regarding rescheduling of loans, Deputy Governor SBP Jameel Ahmed stated that the decision regarding restructuring or rescheduling of bank loans is taken by the banks themselves as per their credit policies and applicable rules and regulations, etc.

The SBP gets involved when any complaint or application for some requisite approval is received or any violation of law or regulation is detected during inspection.

The meeting was told that restructuring involves two things, terms and conditions and regularization of classified loans. The terms and conditions are agreed upon between the banks and borrowers and SBP has nothing to do with it while regularization of classified loan rescheduling involves provisioning of some fund from banks profits to cover the risk factor.

The representatives of Omni Group were of the view that banks have frozen all their credit lines and sought the committee’s support to resolve the matter. They added, “We should be treated as other are being treated.”

The committee requested the State Bank of Pakistan to resolve the issue of Omni Group and treated it on the same lines as others are being treated. “Don’t give the feeling that they are being discriminated or politicized,” the committee added.