All Banks.
Dear
Sirs,
EXPORT
FINANCE SCHEME -
EXTENSION OF LIMIT OF 2003-04
As you are aware that the export refinance
limits sanctioned in favour of banks for the year 2003-2004,
are due to expire on 30-06-2004. You are also aware that
under the present system the exporters are required to
submit the EE statement for the year 2003-04 duly verified
by our Foreign Exchange Operations Department of concerned
SBP, BSC, (Bank) latest by August 31, 2004. Thus the banks
shall not be in a position to work out fresh entitlement
for each exporter to avail facilities under Part-II of
the EFS for the year 2004-05. In order to ensure that the
financing facilities are available to the exporters under
Export Finance Scheme till finalization of new limits for
the banks and new entitlement of the limits for each exporter
under Part-II, it has been decided as under:-
a)
Banks shall continue to avail refinance from offices
of SBP, BSC, (Bank) against overall revolving limits
sanctioned
in banks’ favour for 2003-04, till finalization of
new limits for 2004-05.
b) Limits sanctioned by banks to individual exporters
under Part-II of EFS for 2003-04 shall continue upto August
31, 2004, to enable the exporters to avail financing facilities
under the Scheme pending preparation of EE-1 statements,
their verification by the Foreign Exchange Operations Department,
SBP, BSC, (Bank) and submission of the same to the Refinance
Units of the concerned office of SBP BSC (Bank).
c) The facility under Part-II is self regulating, the
exporters shall continue to foresee their export earnings
during 2003-04, work out their own estimate as to the quantum
of their entitlement for the 2004-05 and should accordingly
adjust their existing borrowings on or before end June
2004 to avoid utilization of excess facilities under EFS
during the period of roll over which would be subject to
fine. Each bank shall be under obligation to explain this
requirement to its constituent exporters who have been
availing Part-II facilities from it.
d) The requests for fresh limit for the year 2004-05 by
each bank is required to be submitted to us latest by the
15th July, 2004.
Please acknowledge receipt.
