PAI Section

6. Internal Procedures & Reports

PAI No.

6.07

Paragraph No/s.

Q/A No.

0389

QUESTION:

Background: We have a cluster loan (2379-INO (Supprogram 1) and 2577-INO (Subprogram 2) that were financially closed in 2008 and 2010,respectively. L2379-NO has an associated TA that is still ongoing and is scheduled to be completed in late 2012. Based on COSO's latest advise, the associated TA must be financially closed before the PCR for the cluster loan is circulated. Question: We are to process a second cluster loan. Is it requried that we circulate the PCR for the first cluster loan before we can process and have the second cluster loan approved? The PAI does not mention anything on this.

ANSWER:

There is no PAI requirement to circulate PCR of the first cluster loan before processing the second cluster loan. In terms of technical processing, the PCR findings of the first cluster loan nonetheless may be considered useful by RRP commenting departments/offices from the aspects of relevance and justifications for the second cluster loan. Therefore, it may be useful to draft a PCR of the first cluster loan identifying achievements and lessons which can be drawn on in processing the second cluster loan. The PCR would then be finalized and published after the closure of the associated TA in 2012.