SBP directed to repay US$500 mln loans to Chinese SAFE

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ISLAMABAD, JAN 17 (APP): Finance Minister Senator Mohammad Ishaq Dar Tuesday directed State Bank of Pakistan (SBP) to repay a loan of US$ 500 million to the Chinese State Administration of Foreign Exchange (SAFE), upon its maturity on 23rd January 2017.
According to finance ministry’s statement, the loan in the form of a
deposit was taken in January 2009, due to the weak current account situation at that time and placed with the SBP. Since then the deposit was rolled over annually, with the latest maturity date set at 23rd January, 2017.
Instead of yet another roll over for a year, it was decided to repay the loan, in view of the strong macroeconomic performance and stable foreign exchange reserves position of the country.
The finance minister had already obtained approval of the prime minister for repayment of the said loan and directed the SBP to make payment of US$500 million to SAFE China on 23rd January, 2017.
Prime Minister Muhammad Nawaz Sharif had formally expressed his deep appreciation to the prime minister and government of China for critical support provided through SAFE deposit for stabilizing the current account since 2009.