Govt urged to defer bank markup on running finance

• They said due to closure of business activities on account of lockdown caused by COVID-19, it was not possible for businesses and industries to pay mark up on running finance in these tough times.
• Banks were placing the names of such businesses in the defaulter list of electronic credit information bureau (ECIB) due to which it would become more difficult for such businesses to obtain bank credit in future.
• The ICCI president said that SBP had come up with some good relief packages for businesses to retain workers and employees, which was laudable.

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to defer the banks mark up on running finance of businesses/industries for 6 months to 1 year.

They said due to closure of business activities on account of lockdown caused by COVID-19, it was not possible for businesses and industries to pay mark up on running finance in these tough times.

Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce and Industry said that many business and industrial units had obtained loans from banks to meet the needs of running finance and working capital and they were paying mark up through revenue generation from business activities.

However, most of the business and industrial units were closed these days due to which it has become very difficult for them to pay mark up and instalments of loans.

He said that banks were placing the names of such businesses in the defaulter list of electronic credit information bureau (ECIB) due to which it would become more difficult for such businesses to obtain bank credit in future.

The ICCI president said that SBP had come up with some good relief packages for businesses to retain workers and employees, which was laudable.

However, he urged that SBP to also work with commercial banks for the deferment of instalments of loans by business and industrial units for running finance and working capital along with markup for at least 6 months to 1 year period that would provide necessary breathing space to business and industrial units for reviving their business activities and pay back loans with markup more easily.