Please refer to AC&MFD Circular No. 01 of 2015 dated January 28, 2015.
2. State Bank of Pakistan launched the Microfinance Credit Guarantee Facility (MCGF) in December 2008 to incentivize commercial banks and DFIs for provision of commercial capital to microfinance providers for on-lending to their clients. The facility has played an instrumental role in facilitating commercial funding for microfinance sector which has helped develop a strong relationship between banks and microfinance providers.
3. MCGF has now reached the end of its lifecycle and successfully demonstrated the viability of microfinance industry to the commercial banking sector. Further, Pakistan Microfinance Investment Company (PMIC) has been established to meet the funding needs of the sector. Therefore, it has been decided that henceforth, SBP would cease to issue new guarantees under MCGF. However, the guarantees issued earlier will remain valid till their expiry.
4. This supersedes all earlier instructions/guidelines issued in this regard.
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