STATE BANK OF PAKISTAN

For business information, annual reports, laws, ordinances, regulations and articles.

950717

STATE BANK OF PAKISTAN NBFIs REGULATIONS AND SUPERVISION DEPARTMENT CENTRAL DIRECTOTATE KARACHI

NBFIs Circular No. 9
17^th July, 1995

All NBFIs

Dear Sirs,

RULES OF BUSINESS FOR NBFIs – GRANT OF RELAXATION
Please refer to Rule 8 of NBFIs Circular No. 9 dated 11 November, 1992. The following relaxation is made.

The said rules shall be read as under:

NBFIs shall ensure that:-
(a) Current asset to current liability ratio of the borrower does not fall below the minimum indicated hereunder:-

i) As from 30-06-1995: 0.7:1
ii) As from 30-06-1996: 0.8:1
iii) As from 30-06-1997: 0.9:1
iv) As from 30-06-1998: 1:1

Current maturities of long term debt not yet due for payment may be excluded from the current liabilities for the purpose of calculating these rations. Lease rentals receivable within the next twelve months as disclosed in the notes to the annual audited accounts shall be treated as current assets for the purpose of calculating these ratios.

(b) Fresh/additional accommodation in the form of long term debts shall be provided on the basis of debt-equity ratio not exceding 60:40. The position of existing facilities may be regularised by 30-06-1998. The borrowers shall inject during each year (1995-96), (96-97) & (97-98) an amount equal to 1/3^rd of the difference between the required equity and the existing equity ratio has been laid down by the Government the ratio laid down by the Government shall apply.

Please acknowledge receipt.

Yours faithfully,

(MANSUR-UR-REHMN KHAN)
Director

Home | About Us | Contact | Information Resources