In order to provide relief to the borrowers of flood affected areas identified by the National Disaster Management Authority (NDMA), microfinance banks (MFBs) are encouraged to reschedule/restructure loans to such borrowers, as per existing Prudential Regulations (PRs) for MFBs, where the possibility of recovery exists.
2) For all such rescheduled/restructured loans and advances, MFBs may defer loan provisioning up to 31st December 2011. However, classification of such loans shall be done as per criteria laid down in the relevant PRs. This relaxation is available for loans and advances which have become non-performing since July 1, 2010 in the affected areas identified by NDMA. Loans/advances classified before this date shall not qualify for this relaxation

3) Any misuse of above relaxations would attract penal actions under the provisions of MFIs Ordinance 2001.

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