Please
refer to ICD Circular No.10 dated 29th October,
1995 along with other instructions issued on the captioned
subject.
2.
It has been decided that effective from 16th
March, 2002
the maximum profit to be earned by a financial institution
on financial assistance to be extended under Part-A (Local
Sales) of the Scheme for financing Locally Manufactured Machinery
(LMM-Scheme) shall not exceed 11% p.a. Where refinance is
obtained from the State Bank it will be remunerated at 9%
p.a.
3.
It may also be added that hence forth the rates under
LMM-Scheme (Local Sales) shall be adjusted on six monthly
basis, keeping in view weighted average yields on the Pakistan
Investment Bonds (PIB’s) of 3 and 5 years tenors. The rates
however shall not be floating in nature for the financing
facility once availed, as they would continue to be determined
on the basis of the rates applicable on the date of execution
of financing agreements between banks and borrower(s); and
shall remain fixed for the entire period of financing.
4. Other instructions
on the subject shall remain unchanged.
Please acknowledge receipt.
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