Sign in
The government has agreed to roll over two USD 1 bn deposits owed by Pakistan for a second year, the State Bank of Pakistan (SBP) said yesterday. The agreement comes after Islamabad formally requested an extension for the loan earlier this week as it struggles with its ongoing economic crisis, according to Pakistani press outlet The News.
This is the second time the deposit has been rolled over: The government originally granted Pakistan the loan in 2019 under a USD 3 bn financial assistance package and rolled it over once already in January of last year.
The details: The extended debt includes a USD 1 bn deposit carrying a 3% interest rate, and another USD 1 bn loan at a 6.5% interest rate, with both set to mature this month, according to Samaa TV. The UAE currently has a deposit of USD 3 bn with the SBP.
Background: Late last week, the IMF approved a USD 700 mn loan to Pakistan as a part of a program approved in July that saved it from defaulting on its sovereign debt.
