KARACHI: The State Bank revised Export Finance Scheme to provide more benefits to the exporters who were earlier complaining about adverse impact of steep fall in the value of dollar in the second half of the last fiscal year.
The markup rate for exporters availing financing facilities under Export Finance Scheme (EFS) will be 7.5 per cent per annum from July 1. Earlier, the rate under the same scheme was 8.4pc.
The State Bank said the banks’ spread for corporate borrowers and SME borrowers will remain unchanged ie 1pc and 2pc, respectively.
The revised markup rate would also be applicable on outstanding loans granted under EFS. Accordingly, all banks were advised to re-price their outstanding loans granted under EFS.
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 annexure–I to the concerned SBP BSC office(s) within 10 days from announcement of this circular.
The reimbursement of markup rate benefit to exporters, on excess performance under Part-II of the scheme will be adjusted accordingly keeping in view the revised markup rates.
The rupee mainly appreciated against the dollar in the second half of the fiscal year 2014 which generated complaints by exporters who asked the government to help them out from this kind of losses.
The latest move by the State Bank to provide cheaper money to exporters would compensate and help them earn more.
LTFF fixed at 9pc
The State Bank has also decided that mark-up rates for end users under Long Term Financing Facility (LTFF) will be 9 per cent for a maximum period of financing up to 10 years, effective from July 1, 2014.
However, spread of Participating Financial Institutions (PFIs) will remain the same 1.50pc, 2.50pc and 3pc for financing up to 3 years, 5 years and 10 years respectively without changing maximum rate for end users. SBP’s refinance rates will be adjusted accordingly for each term of financing.
