941016
STATE BANK OF PAKISTAN NBFIs REGULATIONS AND SUPERVISION DEPARTMENT CENTRAL DIRECTOTATE KARACHI
NBFIs Circular No. 30
16th October, 1994
The Chief Executives,
All NBFIs
Dear Sir,
A complaint has been made that the Banks/NBFIs usually consider only initial working capital in the project cost for determining the total financial assistance. When the project is ready to commence production, the borrowers have to arrange short term financing from some other banks which are usually not observed to be interested in providing short term financing to these newly established units or ask for pari-passu charge to which are Bank/NBFI financing the project are not readily inclined to agree.
While situation may differ from case to case, the Banks/NBFIs may accommodate request for pari-passu charge made by another Bank/NBFI provided their own interest is fully safeguarded and security with them as not diluted below the desired level.
Necessary steps on implement the above recommendation may be taken immediately.
Please acknowledge receipt.
Yours faithfully
(SYED SHAHZAD SAFDAR ZAIDI)
Joint Director
