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Wednesday, January 02, 2013
From Print Edition
 
 

 

KARACHI: The State Bank of Pakistan (SBP) on Tuesday reduced the refinance rate and service charges on its various financing schemes with the exception of financing for over five years and up to 10 years, according to a statement.

 

The SBP said that the rate of refinance under the Export Finance Scheme (EFS) has been reduced by 0.2 percent to 8.30 percent per annum.

 

Exporters will now get the financing facility from banks at 9.30 percent per annum, while service charges under the Long Term Financing Facility (LTFF) have been reduced by 0.70 percent for financing up to three years and by 0.20 percent for financing up to five years, it said.

 

However, the service charges for financing up to 10 years have been raised by 0.20 percent per annum.

 

The service charges under the scheme for financing power plants using renewable energy have also been reduced by 0.20 percent per annum for financing up to five years.

 

However, the central bank said that the service charges for financing up to 10 years have been raised by 0.20 percent.

 

It has been decided that the rate of refinance under the Export Finance Scheme applicable from January 1, 2013 and onwards will be 8.30 percent per annum till further instructions.

 

Commercial banks would ensure that where financing facilities are extended by them to the exporters for availing of the refinance facilities under the Export Finance Scheme, their maximum margin / spread does not exceed one percent per annum, according to a circular issued on Tuesday.

 

The revised markup rate would also be applicable on outstanding loans granted under EFS.

 

Accordingly, banks are advised to immediately re-price their outstanding loans granted under EFS, keeping in view the revised reduced markup rate.

 

Simultaneously, the SBP BSC offices would also apply reduced markup on outstanding refinance loans granted under EFS, according to the circular.

 

In order to reconcile the position of re-priced loans, banks should submit particulars of outstanding loans re-priced by the bank under EFS on prescribed format to the concerned SBP BSC office(s) within 10 days from January 1, 2013, it said.

 
 
 
 
 
 
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