Please refer to the instructions contained in BPRD Circular
No.29 dated the 3rd September, 1996 in terms of which banks
were directed to obtain prior clearance in writing from State
Bank of Pakistan before granting financing facility (whether
fund-based or non fund based) to Modarabas.
The matter
has been reviewed and it has now been decided that banks shall
no longer require prior clearance of State Bank of Pakistan,
in respect of Modarbas having a credit rating of B-3 and above,
while extending financing facilities to them (whether fund
based or otherwise) provided the bank’s exposure is
effectively secured and other Prudential Regulations and instructions
issued by State Bank of Pakistan from time to time have been
duly observed.
In other
cases banks shall however, continue to seek prior clearance
of State Bank of Pakistan in terms of instructions contained
in BPRD Circular No.29 of 3rd September, 1996.
Please
acknowledge receipt.
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