The Presidents / Chief Executives

All Banks/DFIs/MFBs

Dear Sirs /Madam,

Microfinance Credit Guarantee Facility (MCGF)

Please refer to BPRD Circular No. 15 dated 19th December, 2008 and other instructions issued from time to time on the above subject.

With a view to facilitate Banks/DFIs lending to Microfinance Banks/NGO Microfinance Institutions (MFBs/MFIs) for broadening outreach of microfinance, SBP has simplified the procedure for issuance and payment of claims under the Microfinance Credit Guarantee Facility (MCGF) in consultations with Banks/DFIs.

Banks/DFIs are advised to finalize their wholesale lending deals with MFBs/MFIs and submit their cases to SBP BSC for issuance of subject Guarantee as per procedure envisaged in the guidelines attached herewith.

This will supersede all earlier instructions/guidelines issued in this regard.

Please acknowledge receipt.