ISLAMABAD: The negotiations between the government and commercial banks remained successful on Tuesday to resolve the mounting circular debt issue of Rs 400 billion in the power sector of the country.
The banks agreed to expand their sectoral limit for the power sector to provide much needed liquidity to the cash strapped power sector of Pakistan.
Moreover, it would be a lucrative deal for the commercial banks as it is likely that deal would yield higher return to them which would also remained lock for the span of five years. Such a long duration would help the power sector borrowers to get sufficient liquidity and for considerable period to turnaround and resolve mismatch between receipts and payments.
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