According to some media reports, NIB Bank gave an unprecedented relief to Galaxy Textile Mills, owned by Mr Feroz, husband of Pakistan’s Foreign Minister Hina Rabbani Khar.
If reports are to be believed, NIB Bank rescheduled Galaxy’s short and long terms loans, taken six years back, of Rs 19 Crore for next 10 years and to put cherry on top of this deal, all of the markup has been waived.
“After deal, totally against bank rules and regulations, between Galaxy Textiles Mills and NIB Bank, all loan default cases in banking courts and Lahore High Court have been withdrawn,” it added.
The loan of Rs. 13 Crore was taken from PICIC Commercial Bank and Pakistan Industrial Credit Investment Corporation Limited on short term and long term basis. The borrowers include Hina Rabbani Khar’s father in law Arif Gulzar, spouse Feroz Gulzar and brother in law Asad Gulzar.
Later both the financial institutions were merged as NIB Bank with approval of State Bank of Pakistan.
According to reports, about Rs. 10 Crore of debt were taken from PCBL in different dates and for different time period. The debt had to be paid back till July 31st, 2007, but it was not paid by Gulzar family.
Similarly a long term debt of Rs. 9.8 Crore was borrowed from PICIC Bank which was to be paid till January 2007. Afterwards, on request of Arif Gulzar and Feroz Gulzar, debt was rescheduled in 18 installments, but it was still not paid.
If I ask someone whether this rescheduled loan of Rs 19 Crore will ever be paid? It would be a stupid question to ask. After all, ‘Who really cares and who will really remember after ten years?’.
But what we can ask: Is NIB Bank guilty of rescheduling loans like this given their swelling losses?
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