NBP refuses to invest Rs100 bn in PM's Youth Loan Scheme
25 December, 2013
FAISALABAD: The National Bank of Pakistan (NBP) has informed the State Bank of Pakistan (SBP) that it cannot invest Rs100 billion in the Prime Minister's Youth Business Loan Scheme as it involved great risk.
The NBP said that the step of lending money, if realised, would affect other departments of the bank. Therefore, it had agreed on investing Rs15 billion only inthe PM's Youth Loan Scheme.
After NBP's excuse, the government has decided to involve private banks for lending the loans. There is a possibility that the private banks will be made to lend Rs70 billion for the venture. The process of negotiating with different banks has also been started.
It merits mentioning here that the NBP has been assigned the responsibility of releasing Rs90 billion till June 30, 2014, whereas the First Women Bank would lend Rs10 billion for the loan project. However, by including private banks in the scheme, the number of banks are likely to remain at seven.