Govt settles 105 million loan for Roosevelt Hotel

The Economic Coordination Committee (ECC) has approved a grant of US$ 105 million for Pakistan International Airlines’ (PIA) New York-based Hotel Roosevelt.

According to the details of Baaghi TV, ECC of the Cabinet has given a go-ahead to pay all the liabilities to rescue Roosevelt Hotel in Manhattan, New York that has fallen into a debt trap and its assets are at risk.

According to sources, PIA Corporation Limited (PIACL) chairman, earlier, informed the Aviation Division that the financial health of the company does not permit it to clear the debts. Therefore, according to the letter, the government of Pakistan has been requested to provide a financing of US$ 125 million urgently, enabling them to secure PIACL’s most valuable asset. The ECC was also informed that even partial operations of the hotel were not sustainable at the moment.

Roosevelt Hotel had acquired a loan of $105 million from JP Morgan at an interest rate of 5.05% with maturity in April 2021. Annual interest payment had been calculated at approximately $6 million.

US$ 105 million, out of US$ 168 million, was left which has been paid to JP Morgan by the Government of Pakistan (GoP) and has acquired the hotel.

Moreover, Baaghi TV has reliably learnt from its sources that United States (US) President Donald Trump firms to enter into joint venture with the GoP. According to the joint venture, the Manhattan based hotel will be transformed into a 2,000 room hotel due to its geographical significance.

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