KARACHI- The State Bank of Pakistan on Wednesday advised banks and DFIs to allow financing for the import of second hand plant and machinery to be used in the eligible sectors / sub-sectors of LTFF Scheme. The central bank said the financing would be subjected to the following conditions:- i. Only imported second hand machinery not more than three years old will qualify for financing under the scheme. ii. Second hand machinery purchased from local suppliers will not qualify under the scheme. iii. Further, fixed term loans extended by banks/DFIs against second hand imported machinery prior to the issuance of this circular will not be eligible for refinance. iv. The useful life of such machinery should be more than the period of loan itself. v. The borrowers concerned should submit a report from PBA's approved surveyors (acceptable to bank/DFI concerned) with regard to confirmation that machinery is in order and its useful life is more than the period of loan itself. vi. Banks / DFIs can avail refinance for a maximum period of three years, to the extent of value of such machinery determined by the approved surveyor; or original cost less accumulated depreciation @ 10% p.a., which-ever is lower. vii. LCs established from the date of this circular to Dec 31, 2009 shall be eligible for refinancing from SBP.