NBP refuses to revisit PSM borrowing cost

ISLAMABAD: National Bank of Pakistan has refused to revisit the cost of borrowing of Rs 7.6 billion loan and loan rescheduling fee, which was agreed by the Acting Chief Financial Officer (CFO) of Pakistan Steel Mills (PSM), according to official documents available with Business Recorder. General Manager, Coordination/Finance, Abdul Aziz Memon, in a letter had requested the bank to revise downward the pricing of loan.  In response to PSM’s letter of December 20, 2011, NBP maintains that the terms and conditions of Rs 7.60 billion Term Loan Facility (disbursed to maximum Rs 6.907 billion) were finalised/accepted by the Acting CEO of Pakistan Steel Mills vide their covering letter No. CF/A-1-B/2010 dated October 14, 2010.
However, upon the Ministry of Finance (MoF) instructions, the following changes were made in NBP’s revised offer letter of October 20, 2011, which was also accepted by Acting CEO of PSM.
A brief comparison of the two term sheets is as follows: profit/mark-up rate, actual 6k + 1.95% p.a., revised 6k + 1.75% pa; advisory/arrangement/rescheduling fee, actual 1.50% (one time), revised 0.40% (one time); agency fee, actual Rs.1.50 million p.a., revised nil; trustee fee actual Rs.1.50 million p.a., revised nil; legal fees, revised capped up to maximum…
Islamabad News Sources

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Posted by News Pakistan Admin on Jan 6 2012. Filed under Breaking News, Business, Latest News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry