Interest rate lowered to 5% for companies that retain employees: Baqir

Islamabad: State Bank of Pakistan Governor Raza Baqir recently announced the central bank’s decision to accommodate delays in loan interest payments, along with providing loans at the rate of 5% interest per annum, for companies that refrain from firing their employees during the course of the coronavirus pandemic — a news source reported.

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Providing further details on the matter, the governor said that the loans would be granted within 15 days and that if a company faced any difficulties during the process, then they should contact the State Bank directly. He added that the federal government had the power to waive off the interest rate payments altogether; however, the state would have to provide the banks a subsidy if they did so.

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Governor Baqir made these comments while briefing a National Assembly committee on State Bank matters through a video link. During the session, he further revealed that the central bank had recently pushed forward the deadline for the repayment of loans worth nearly PKR 1 trillion and that other such relief measures were also under consideration.