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BACKGROUND: Serious cash flow problems fix drag DHA to seek a moratorium on the re contributement of over Rs10 one thousand thousand loans from a consortium of mercantile banks for 2 years. The inability of DHA is ascribable to the mismanagement of the authority as it made extraordinarily persistent payments to the third party contractors for science of land. The size of DHA is very huge. It stretches from Rawalpindi urban center on one side to Rawat and beyond on the other, it outsourced encyclopedism of land to powerful hole-and-corner(a) parties. DHA got thousands of acres of land from these private parties at extremely high rates. It is alleged that these parties made ccc share profit by giving the land to DHA. hypercritical point OF DHA: The situation of DHA is so critical that it had hindered its payments to contractors, suppliers and employees. It has led to extravagant delays in project development for which the DHA charges its military and civilian speckle holders regularly. DHA is facing the resentment among its residents and property owners. The critical situation of DHA is besides denotative by an affected banker in the following words. If a outgrowth delays a payment installment, the DHA immediately applies a 10-15 percent late(a) payment surcharge.

But now that the authority itself is facing problems in paying its own liabilities, it is seeking a moratorium from banks. MORATORIUM AND relate rate: The moratorium of repayment of over Rs.10 billions loans to DHA by consortium of commercialised banks was of twain years. The interest rate by the three master(prenominal) banks i-e Askari bank, Bank Alfalah and UBL i s amounted to Rs. 3 billion. DHAs REQUEST! TO BANKS: Documentary establish available with finish off indicates a formal request for the moratorium to a consortium of commercial banks by DHA. However, informed sources said the DHA had not only refused to pay back loans to the three main banks scarcely had also asked for a waiver of interest rate payments for two years. The three banks have showed their...If you want to get a secure essay, order it on our website: OrderEssay.net

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