SBP allows financing under LTFF

KARACHI - The State Bank of Pakistan has allowed financing facilities under Long Term Financing Facility (LTFF) Scheme for import of generators/captive power plants (including other allied machinery items used to generate electricity) in order to facilitate export-oriented industries to overcome problems arising out of prevailing electricity crisis.
According to a circular issued by the SBP on Monday, the financing facilities for generators/captive power plants will be available provided the capacity of generator/captive power plant shall not be in excess of their in-house energy requirements for the manufacturing of their products. In case of excess generation capacity, only the proportionate financing up to the manufacturing requirements of the unit/project will be eligible.
Similarly, refinancing shall be allowed to the extent of 50pc of financing provided by banks/DFIs for import of generators/captive power plants. Remaining 50pc shall be financed by the banks/DFIs from their own sources as per the terms and conditions of financing banks/DFIs agreed with the borrowers concerned. According to the circular, L/Cs established since January 1, 2008 but retired/to be retired during the period from January 1, 2009 to Dec 31 shall be eligible for refinancing under the scheme. Minimum exports of the unit/project should be at least 50pc of its annual sales, the circular added.