Please
refer to the instructions issued on the subject from time
to time.
2.
As you are aware the rates under EFS, which were adjusted
on quarterly basis are now being adjusted on monthly basis,
necessitate at least six adjustments during the currency of
the loan period, which has been fixed at 180 days for all
eligible commodities except carpets for which the facility
is available for 270 days.
3.
Under the Export Finance Scheme the exporters are required
to perform by affecting shipments to the extent of 100% of
the amount availed by them under Part-I of the scheme and
twice the amount of average borrowings under Part-II. The
exporters who availed the facility under Part-II can avail
the benefits of reduced rates by adjusting their outstanding
loans and reavailing the same as a new loan, as they have
to fulfill the performance requirements by the close of the
monitoring year. However the exporters under Part-I cannot
avail benefit of reduced mark up by liquidating their outstanding
loans, as on liquidation of their loans they are obliged to
submit shipping documents, failure to which attracts fine
for non shipment. In order to give benefit of the reduction
in EFS rates to the exporters under both Parts of the scheme,
banks are advised to reprice their outstanding loans granted
under Export Finance Scheme on monthly basis effective from
1st December, 2001, keeping in view the revised reduced
rate under EFS notified by the State Bank on monthly basis.
The Offices of SBP Banking Services Corporation (Bank) would
also simultaneously revise the rate of return on such refinance
loans granted by them to banks falling under their jurisdictions
for which the financing banks shall submit to them duly filled
in information on the annexed format.
4.
The banks shall, however continue to charge mark-up at the
normal rate of finance in case outstanding finance under EFS
is not repaid by the exporter on the respective due dates.
5.
Other relevant instructions on the subject shall, however
remain unchanged.
Please acknowledge receipt.
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