The
Chief Executives,
All Banks / DFIs.
Dear
Sirs / Madam,
CLARIFICATION-
SBP GUIDELINES ON WRITE-OFF
OF IRRECOVERABLE LOANS AND ADVANCES
Please refer to BPD Circular No. 29 dated October 15, 2002
regarding captioned subject.
We have received some representations from the banks/DFIs
requesting for an incentive on immediate repayment of settlement
amount in lump sum instead of repayment in 3 years as stipulated
in subject SBP guidelines. In this regard, it is clarified
that banks/DFIs can provide some incentive to the eligible
borrowers who are willing to immediately repay full settlement
amount in lump sum, keeping in view net present value of
future repayments (based on their respective average lending
rates).
It may please be clearly understood that the above incentive
provided to the borrowers will not, in any case, be reimbursed
by SBP.
Please acknowledge receipt.