The Presidents/ CEOs,

All Banks,

Dear Sirs,

Export Finance Scheme – Refixation of rates for the month of August  2003

Please refer to BPD Circular No. 21 dated 30^th June, 2003 alongwith other instructions issued from time to time on the captioned subject.

2.       It has been decided that rate of refinance under the Export Finance Scheme applicable for the month of August 2003 shall be 1.5% p.a. The commercial banks shall, however, 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 1.5% p.a.

3.       The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery shall also attract similar mark up rate structure.

4.       Other instructions on the subject shall remain unchanged.

          Please acknowledge receipt.