According to the statement, now the exporters can get financing from banks under EFS at 9.5 per cent per annum. Earlier, the exporters were getting the financing under this scheme at 11 per cent per annum.
It has been decided that rate of refinance under the Export Finance Scheme applicable from September 10, 2012 and onward till further instructions shall be 8.50% per annum. The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin/spread does not exceed 1% p.a. says bank circular issued to all banks today on Monday.
The reimbursement of mark-up rate benefit to exporters, on excess performance under Part-II of the Scheme, as specified in SMEFD Circular, will be adjusted accordingly keeping in view the revised mark-up rates, the circular added.
The rates of service charges for Participating Financial Institutions (PFIs) and rates for end users under the Long Term Financing Facility (LTFF) have also been reduced by 150 basis points with effect from September 10, 2012. The rates of refinance under LTFF will now be 9.50% for financing up-to 3 years, 8.60% for over 3 years and up-to 5 years and 8.20% for over 5 years and up-to 10 years.
Participating Financial Institutions‘(PFIs’) spread for these tenors will be 1.50%, 2.50% and 3.00% respectively. Hence, the end users’ rates for these tenors have now been reduced to 11.00% from 12.50%, 11.10% from 12.60% and 11.20% from 12.70% respectively, according to circular.
Circular said, the rates of service charges under the Scheme for Financing Power Plants Using Renewable Energy have been re-fixed at 8.60% for financing up-to 5 years and 8.20% for over 5 years and up-to 10 years with effect from September 10, 2012. Banks/DFIs will be allowed to charge 2.50% and 3.00% spread respectively for these tenors. Hence, the end users’ rates for these tenors have now been reduced to 11.10% from 12.60% and 11.20% from 12.70% respectively.
NNI adds: Dr Mirza Ikhtiar Baig, Advisor to the Prime Minister on Textile, has hailed decision of State Bank of Pakistan to reduce Export Refinance Rate by 1.5pc on all schemes of ERF.
At the time of reduction in discount rate, Dr Baig had requested Governor State Bank to also reduce Export Refinance rate to boost exports and to make Pak products competitive in the int’l market. Dr Baig called this reduction in Export Refinance rate a step in right direction which was the long awaited demand of the exporters of Pakistan.
Dr. Baig met President of Pakistan Asif Ali Zardari at President House to thank him for his support to bring down mark-up rate to single digit which will boost industrialization and create new jobs in the country.