Reclaiming bad debts: ZTBL to cash in on defaulters’ assets

Banking court of Gilgit-Baltistan will be approached to legalise the proceedings, for which cases have been prepared.


Shabbir Mir January 20, 2012

GILGIT:


For loan defaulters of Zarai Taraqiati Bank Limited (ZTBL) the noose is about to tighten.


A bank official, requesting anonymity, told The Express Tribune on Thursday that the properties of nearly 40 people, who obtained loans from ZTBL’s regional branch during the late 1980s and then defaulted, will be sold to make up for outstanding amounts worth over Rs10 million.

The official said that the banking court of Gilgit-Baltistan will be approached to legalise the proceedings, for which cases have been prepared.

Prominent defaulters include Pakistan Peoples Party’s Information SecretaryRana Nazim among several others who defaulted on loans worth over Rs50,000. The bank official explained that all loans less than Rs50,000 were written off by the government in view of people’s deteriorating economic conditions following the 2010 floods.

ZTBL has issued several notices to defaulters in the past 25 years but failed to recover the outstanding amounts, the official said.

Another source added that families of deceased loan defaulters have not paid back the loans, as they were bound to do by the loan agreement.

Published in The Express Tribune, January 20th, 2012.

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