ISLAMABAD Dec 18: Zarai Taraqiati Bank Limited (ZTBL) has extended the last date for clearance of the outstanding amounts under settlement package of non-performing loans up to December 31, 2003.

According to an official announcement, the scheme has been announced under guidelines of State Bank of Pakistan policy for write off/remission of irrecoverable loans for settlement of non-performing loans classified as “Loss” continuously for three years or more.

The scheme applies to only stuck-up and non re-recoverable loans which have been categorized into three separate groups — one with loans outstanding amounting up to Rs0.5 million; second, more than 0.5 million and up to Rs2.5 million; and third more than Rs2.5 million.

Under this package only those loan cases would be eligible for settlement which were continuously in default from January 7, 1998 in case of production loans and from January 7, 1997 in case of development loans.

Fifty per cent of the outstanding amount against up to Rs0.5 million loan will be recovered while 5 per cent of outstanding amount will be received as down-payment and remaining within one year.

In cases where the outstanding amount is more than 0.5 million but less than Rs2.5 million with Forced Sale Value (FSV) of security more than the outstanding amount, 75 per cent of the outstanding amount will be recovered in case to settle the account.

In cases with forced sale value of security less than the outstanding amount then the sum equal to forced FSV will be recovered.

The above criteria shall also apply to cases where the outstanding amount exceeds Rs2.5 million or where latest valuation of properties held as security have value of Rs2.5 million and above. For cases of category 2 and 3 token money is 10 per cent of settlement amount.