KARACHI, June 16: The State Bank has announced that it would not extend further the validity of its scheme on write-off of irrecoverable loans and advances. The scheme will expire on June 30, 2003.

“The SBP has, therefore, advised the borrowers/defaulters to approach the concerned bank/DFI to clear their outstanding liabilities before the expiry of date of the scheme as no request will be entertained after this deadline,” the SBP announcement says.

The State Bank through a circular issued in October last year had issued new guidelines on write-off of irrecoverable loans and advances to provide a one-time opportunity to borrowers/ defaulters to repay their long outstanding liabilities on flexible terms and to revive their sick units. By way of these guidelines the banks/DFIs have also been facilitated to clear the infected portfolio from their books.

The SBP scheme was originally scheduled to expire on April 14 2003. However, on the representations from the business community and banks/DFIs, the expiry date of the scheme was given one and final extension up to June 30, 2003.