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.
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