Please refer to IH&SMEFD Circular Letter No. 4 of 2020 on the captioned subject, whereby regulatory relief measures were announced to dampen the adverse effects of COVID-19 on housing finance portfolio of the banks/DFIs.

2. Considering the prevalent COVID-19 pandemic and the representation of the stakeholders, it has been decided to extend, by ninety days, the last date for submission of the requests by borrowers for deferment of principal. The borrowers, who have not availed the deferment of principal, may now submit their request, to the banks/DFIs, up to September 30, 2020, for availing this facilitation under Para 2 (i) of the aforesaid IH&SMEFD Circular Letter.

3. It is also being clarified that the Banks/DFIs, by defining policy parameters to evaluate the merits of each case and recording reasons & justifications there against, can process the requests, for one time only, for rescheduling / restructuring [Para 2(ii) of the aforesaid IH&SMEFD Circular Letter] received from such borrowers who have already availed the deferment of principal amount.

4. All other instructions on the subject matter shall, however, remain unchanged. The Banks/DFIs are advised to follow the revised instructions in letter and spirit. Any deviation or non-compliance of the same shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.

5. Please acknowledge the receipt.