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CIRC satisfied with 88 non performing loans restructuring

ISLAMABAD (January 16 2004): The 13th meeting of the Corporate and Industrial Restructuring Corporation (CIRC) has expressed satisfaction over restructuring of 88 non-performing loans (NPLs) with gross sale price of Rs 3.7 billion, resulting in surplus of Rs 694 million for CIRC.

Finance Minister Shaukat Aziz chaired the meeting here on Thursday. Javed Hameed, CEO briefed the meeting about the issuance of CIRC Bonds of over Rs 4 billion to UBL against the non-forming loans acquired from UBL during its privatisation.

He also apprised the board that the CIRC has facilitated the privatisation of HBL by acquiring 69 non-forming loans with an outstanding of Rs 7 billion.

The restructuring process, thus, created over 30,000 direct and indirect employment opportunities.

The meeting also appreciated CIRC management for recovery of 32 years old overseas loans amounting to Rs 868 million, which were in default.

The Board also considered the annual accounts of CIRC for the year ending June 2003 and observed that CIRC through re-organisation has saved considerable amount on its expenses and increased its corporate efficiency.

The Board directed the CIRC management to continue reviewing its performance and maintain pro-active corporate approach to achieve even better results.

The meeting noted that the CIRC has repaid over Rs 50 million loan taken as seed money from the government for the establishment of the CIRC.

The Board approved the management's proposal for direct settlement with 17 borrowers, resulting in lump-sum recovery of Rs 141 million and further directed CIRC to process remaining settlement proposals expeditiously.

The Board welcomed the presence of Dr Abdul Hafeez Sheikh, Minister for Investment & Privatisation as Member of the Board.

Shaukat Aziz welcomed Dr Hafeez Sheikh and informed that the cabinet has approved amendments in the CIRC laws, which will now be presented in the parliament for deliberation and assent.

He congratulated Javed Hameed on his re-appointment as CEO and hoped that under his steward-ship the CIRC would continue to accelerate the process of restructuring for revival of economy.

Shahzad Alam, Sardar Muhammad Ashraf, Fazlur Rahman Dittu, Faiz Rasool, senior officers of Ministry of Finance and CIRC attended the meeting.

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