Please
refer to BPD Circular No. 29 dated the 15th October,
2002, on the above subject.
It has been brought to the notice of State Bank of
Pakistan that some banks/DFIs are not entertaining the requests
for fresh financing for working capital purposes of those
borrowers, who have settled their liabilities under the aforesaid
circular/guidelines. It is clarified that all those borrowers
who have availed the scheme notified by the concerned bank/DFI
in the light of guidelines issued vide the above circular
may be eligible for fresh financing. The banks/DFIs are advised
to consider and examine such requests strictly on merit, viability
of project/business, appropriately securing their interest
etc and ensuring compliance with all rules and regulations
on the subject.
It may, however, be noted that fresh financing may
be kept in a separate account and monitored from the date
it is granted to the project/business.
The fresh financing, if any, will be treated on a stand
alone basis, on its own strength, and not be linked to the
classification of the original defaulted amount, unless the
status of such fresh financing subsequently, based on its
performance, attracts classification and provisioning under
the Prudential Regulation VIII.
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