SBP flags delay in Roosevelt loan | The Express Tribune
Key Takeaways
- The State Bank of Pakistan (SBP) is seriously concerned about the delayed repayment of the NBP loan related to the Roosevelt Hotel.
- The ECC noted PIAIL's failure to convert the NBP's foreign exchange loan into a rupee loan.
- The ECC directed the ministry to reassess and rationalize the requested $17.6 million financial support proposal within one week.
- The Roosevelt Hotel's lease agreement with New York City was terminated, eliminating its revenue stream after June 30, 2025.
- PIAIL needs financial support to cover liabilities and carrying costs post-lease termination, despite previous earnings.
The State Bank of Pakistan (SBP) raised serious concerns over the delayed repayment of the National Bank of Pakistan (NBP) loan concerning the Roosevelt Hotel, particularly after the termination of the lease agreement with New York City. During an Economic Coordination Committee (ECC) meeting, explanations were given for seeking $17.6 million in financial support to cover liabilities like union costs and taxes. The ECC observed that PIAIL had made no progress on converting the NBP's foreign exchange loan into a rupee loan, and the Finance Division noted insufficient clarity on certain demands. In response to the delayed submission and ongoing financial uncertainty, the ECC mandated that the ministry reassess the financial proposal within one week, rationalize the requirements to the minimum level in consultation with NBP, SBP, and the Privatisation Commission, and submit a revised plan. The hotel's revenue stream is set to cease after the lease termination on June 30, 2025, creating a shortfall to cover outstanding liabilities and carrying costs.
