HBFC barred from risky borrowing

The Privatisation Commission (PC) board on Tuesday barred the management of House Building Finance Company (HBFC) from taking expensive but risky commercial loans for their re-lending and investment in government debt and picked two parties for the privatization of the entity.

At a time when the PC was putting in all its energies to sell the company, the HBFC management tried to borrow more to finance new mortgage loans, finance investment in government securities, and finance the development of land blocks on its balance sheet.