Fed cabinet rejects proposed IDBP’s restructuring

Federal Cabinet has rejected the proposed restructuring of the Industrial Development Bank of Pakistan (IDBP) into a company Industrial Development Bank Limited (IDBL) and after due deliberation and discussion, has decided to start the process of winding up the troubled bank.

During a meeting of Federal Cabinet chaired by the Prime Minister Syed Yousaf Raza Gilani on Friday, official sources informed that IDBP is facing Rs 28 billion losses due to sanctioning of huge loans against fake collaterals and less than the actual value of the loan—which would be recovered by selling of the IDBP’s assets across the country.

From: Daily Times