Please refer to BPD Circular No. 29 dated October 15, 2002 and subsequent BPD Circular Letter No. 37 dated December 26, 2002 on the captioned subject.

2.          In this regard it is further clarified that:-

   i.       The loan originally classified as “Loss”, but was declassified due to subsequent rescheduling/ restructuring and reclassified in original “Loss Category” (due to breach of agreement or any other reason) shall also be eligible under SBP guidelines on write-off. For the purpose of determining the period of 3 years “Loss Category”, the same will be calculated from the date on which the loan was originally/ initially classified as loss.

   ii.       Forced Sale Value (FSV) of the mortgaged assets will be valid for two years from the date on which valuation was made by the Bank/ PBA’s approved panel of valuators for settlement under SBP guidelines. No fresh valuation is required in such cases.

  iii.       For transparency purpose, the Banks/DFIs are advised to provide a copy of the valuation report to the borrowers on their demand, only for their information and record.

3.          Please acknowledge receipt.