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Passports of blacklisted loan defaulters annulled

 

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News item 18-2-2007

The government is implementing a decision to annul the passports of 80 blacklisted loan defaulters associated with 27 leading business groups and is sending formal letters to this effect from Sunday to all concerned. These businessmen have in total defaulted Rs 12 billion from domestic banks. A high level source said that the government is implementing seriously the cabinet decision of December 2006 which delegated authority to the Finance Ministry to take action against business houses that have defaulted on commercial bank loans of over Rs 50 million. Reportedly, Finance Minister Dr Ram Sharan Mahat initiated the move on Wednesday after seeking consent from Prime Minister Girija Prasad Koirala. The Finance Ministry took the decision on the basis of names recommended by six leading commercial banks through Nepal Rastra Bank. According to a source, Nepal Bank Limited had forwarded the names of 11 business groups for the passport seizures, and NIC Bank recommended six groups. Similarly, Rastriya Banijya Bank gave four names, Himalayan Bank three, Lumbini Bank two and Nabil Bank one for the same purpose. Among the 27 big defaulters The Fulbari Hotel Limited, owned by Amatya Group, is the largest. The Fulbari was blacklisted on August 2003. It has defaulted Rs 3.60 billion -- Rs 1.30 billion principal and Rs 2.30 billion in interest. Altogether eight borrowers of the group are losing their passports and will be restricted in selling off fixed assets. Likewise, Mahalaxmi Sugar Mills, which was blacklisted in April 2001 has defaulted Rs 1.40 billion.
 

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