Laws demanded to stop loan defaulters from leaving country

September 17, 2013 Off By Web Desk

KARACHI: Union of Small and Medium Enterprises (UNISAME) has urged State Bank of Pakistan (SBP) to make rules and regulations to disallow loan defaulters from leaving the country.

President UNISAME Zulfikar Thaver said in a statement on Tuesday that in order to make the banks comfortable in financing the entrepreneurs, it is important that such laws should be made to secure the banks to enable them finance mortgagers with assurance of repossesing property in case of the mortgagers inability to pay.

Secondly, it becomes very tedious for banks to repossess the immovable mortgaged property if it is locked as in the absence of the mortgager the lock cannot be broken due to legal complications. The union is striving hard to promote financing for entrepreneurs but the banks are reluctant and seeking smooth repossession of mortgaged immovable property.

Thaver said for this reason the banks are promoting car finance because of easy possession due to duplicate key with them and ownership title documents in their name and tracking systems installed and fully covered by insurance. Thaver said the unions prime objective is to make the banks comfortable, otherwise they are not inclined to finance. He urged SBP to develop financing systems for the sector keeping the banks comfort and securing them by virtue of credit guarantee insurance.