Please
refer to the captioned Scheme circulated vide BCD Circular
No. 29 dated the 11th October, 1977 as amended
from time to time.
2.
We have to advise as under: -
i.
In terms of Para 2 of the Scheme, Banks are required
to submit application for approval of refinance limits based
on their equity. In order to avoid difficulties in providing
export finance under the Scheme, it has been decided to allow
continuation of limits granted to banks beyond 30th
June, 2002 at the level of limits for the year 2001 – 2002
sanctioned and advised to banks. In this connection you are
advised to please furnish us your requirement of limits for
the year 2002-2003 under the said Scheme for the year 2002-2003
latest by the 15th July 2002.
ii.
The limits granted to the exporters by you under Part-II
of the Export Finance Scheme for the year ending 30-6-2002
on the basis of export earnings of 2000-2001 are also allowed
to continue upto 31-8-2002. In the meantime the exporters
may be advised to submit fresh Form EE-1 for the year ending
30-06-2002 for availment of loans for the monitoring year
2002-2003 and / or to cover loans availed /adjusted during
the above extended period. It is however, clarified that the
extension of limit has been allowed with a view to accommodate
the immediate refinancing needs (without waiting for verification
of Form EE-1 by the Exchange Policy Department) of the exporters.
The banks should make every effort to have Form EE-1 of all
their clients concerned are verified by the Exchange Policy
Department and submit the same to the respective Offices of
SBP within the prescribed period.
iii.
As the facility under Part-II is a self-regulating,
the exporters are required
to foresee their export earnings during current FY,
work out their own estimate as to the quantum of their
entitlement during next
FY and should
accordingly adjust their existing borrowings on or before
end June each year. The utilization of Part-II facilities
during the roll over period of two months in excess of the
entitlement of limit, for next FY shall attract fine at the
rate provided in the Scheme, as usual.
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