20000112

SBP releases

forex for Hubco's

debt service

payment

RECORDER REPORT

KARACHI: The State Bank of Pakistan (SBP) has released the foreign exchange for Hubco's fifth scheduled debt service payment which was due on January 11, 2000.

According to a press release issued by the Hub Power Company on Tuesday, an amount of 50.9 million US dollars will now be remitted to the senior lenders to cover the principal and interest payments for Hubco's on its currency debt.

The total debt in rupees of 4,052 million is greater than the foreign exchange component of 50.9 million dollars as it includes a rupee component also, paid to the National Development Finance Corporation (NDFC) as well as Foreign Exchange Risk Insurance (FERI) payments to the State Bank of Pakistan.

The company views the timely release of foreign exchange as a positive development since it had experienced payment difficulties in the past.

Hubco's spokesperson, Dr. Anjum Siddiqui said that Hubco was eagerly awaiting the Chief Executive's report on IPPs due on January 15, 2000. "We are expecting that the report would be the basis for a long-awaited decision on the alleged criminal charges on Hubco. The company hopes that the report would be decisive and would vindicate the company of the baseless criminal charges which were levied by the previous government to extract commercial concessions and politicise a purely commercial issue."