SBP amends LTFF for plant, machinery

KARACHI - SBP has made amendments to Long-Term Financing Facility (LTFF) scheme for plant and
machinery and equipment.
According to the amendments, the Letter of Credit (LCs) established before the announcement of the LTFF
scheme and retired after June 30, 2007 will also be eligible for financing under the scheme.
However, LCs which have been retired through own sources of the sponsors of the export oriented industries,
will not be eligible under the scheme.
Similarly, financing for plant, machinery and equipment to be used by the export oriented projects for
regeneration of textile waste into usable fiber for producing value added exportable products shall also be
eligible under the subject scheme.
The SBP said that the refinancing will be allowed to the extent of 50% of financing provided by banks/DFIs to the
eligible borrowers availing facilities under para i & ii, while the remaining 50% will be financed by the
banks/DFIs from their own sources as per the terms & conditions of financing banks/DFIs agreed with the
borrowers.