ISLAMABAD, April 18: The Zarai Taraqiati Bank (ZTBL) has extended closing date to July 31 for settlement of stuck up loan cases classified continuously as ‘loss’ during last three years.

The bank has also announced a reduction in token money by five per cent to small borrowers.

The relief was allowed by the State Bank of Pakistan only to the borrowers of ZTBL in pursuance of the prime minister’s announcement made earlier.

The ZTBL has issued instructions to its field functionaries that the settlement period for loans falling under category “A”, loans having outstanding amount upto Rs0.5 million for more than five years, has been extended from three months to one year. The borrowers will also be offered 50 per cent relief provided they pay five per cent instead of 10 per cent token money immediately and the remaining amount within one year.

The package also provides that borrowers with stuck up loans of more than Rs0.5 million can avail 25 per cent relief on repayment of 10 per cent take money and remaining in easy instalments of three years.

The package is applicable to the production loans in default with effect from January 7, 1998 and development loans from January 7, 1997.

The State Bank of Pakistan has allowed these concessions to the borrowers of ZTBL only realizing the bank’s restructuring exercise in streamlining its operations, increasing financial viability, and extending outreach for attaining self sufficiency in food grains.