Ordinance puts premium on integrity, promotes clean biz: FinMin

The bankruptcy ordinance promulgated by the President last week will pave the way for clean business by putting a premium on integrity, a senior finance ministry official said.

The official said that ordinance does not seek to provide any relief to loan defaulters while on the other hand it explicitly prohibits them and their associates from reclaiming assets under resolution at a discount.

Observing that there were reports that some defaulting promoters were trying to buy assets at huge discounts in clandestine manner, the official said it was moral and ethical responsibility to prohibit entry of such misuse of public money.

The ordinance, the official added, is primarily aimed at safeguarding the public money from being misused by dishonest businesses.

“The message in the ordinance is loud and clear. Business will have to either perform or exit and there is absolutely no room for wilful defaulters or dishonest business. Cushion of loan waiver of any kind does not arise,” the official said.

The move is against unscrupulous elements in the business who were using the banks’ money irresponsibly.

(Agencies)

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