Bank Rejects To Offer Aid To The Sindh Government On Low Interest Charges
January 8, 2010
It is consistently find out that the Emirates Global Islamic Bank has turned down to afford with the economic support to the Sindh government for the agro supported industries on stumpy interest charges.
Consistent with authorized informants, the economics section had required monetary support from the Emirates Global Islamic Bank for the founding of agro-based industries within the province by means of the Sindh Development Fund (SDF) on the basis of the public private companionship.
The officers of economics unit organized a string of appointments with the legislative body of the Bank in order to get to an accord for making certain monetary aid intended for the agro-based industries. The Sindh Government was being adamant in favor of the stumpy interest rates; on the other hand the bank organization did not measure up the economics department’s standpoint and turned down to do a deal on the interests.
A short time ago a letter is sent to Special Finance Secretary Naheed S Durrani form Senior Vice president, Corporate and Investment Banking, Emirates Global Islamic Bank with the intention of letting her know that the bank was anticipating act with the Sindh Government but it would not meet halfway related to interest rates.
According to the bank’s letter it is learnt, “It is mentioned that the interest/profit rates are market driven and are decided keeping in view the inherent risks of the project. Since the Government of Sindh is only taking up the interest/profit portion of the projects and is not guaranteeing the repayment of principal amount, therefore we shall not be in a position to compromise on the interest/profit rates especially considering that the most of these projects would be Green Field Projects�.
Posted by Angelia Kates · Filed Under Opinion
