Please refer to the definition of Sub-ordinated Loan, given at Para 24 and 20 of Prudential Regulations for Corporate and SME Financing, respectively.

2. It has been decided to replace the definition with the following:

“Subordinated Loan means an unsecured loan, extended to the borrower for a minimum original maturity period of 5 years, subordinate to the claim of the bank / DFI taking exposure on the borrower, and documented by a formal sub-ordination agreement between provider of the loan and the bank / DFI. The loan shall be disclosed in the annual audited financial statements of the borrower as subordinated loan.”

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