| 2. |
Whether
the rates of service charges (mark up) on the loans
under debt swap arrangements shall be fixed on the original
tenure of loan or remaining maturity period of loan? |
Rates
of services charges (mark up) on the loans being converted
under said arrangements shall be linked with the period
of refinance involved instead of original period which
was fixed by the banks/DFIs at the time of disbursement
of original loan. |
| 4. |
Whether
debt swap facility can be used to retire a long term
loan under the Islamic Modes of Financing (like Ijara
/ modaraba etc) against a new loan through banks/DFIs
using LTF-EOP Scheme? |
At
present no accommodation of debt swap can be allowed
as the LTF-EOP Scheme operates on service charge basis
which is a non Shariah compliant method and Islamic
banks cannot avail refinance under the said terms
from SBP. However, the banks who can offer Islamic
products to their clients and are also able to avail
refinance from SBP under present arrangements can
avail debt swap facilities under LTF-EOP Scheme.
Further,
we have already clarified to the banks/DFIs that a
borrower can transfer the debt from one bank to another
bank for the purpose of debt swap subject to the fulfillment
of provisions contained at Sr. 3 of SME & MFD
Circular Letter No. 07 dated November 11, 2006. |