All Banks/DFIs

Dear Sirs/Madam,

Long Term Financing of Export Oriented Projects (LTF-EOP) – Re-fixation of markup rates thereof

Please refer to the captioned scheme circulated vide BPD Circular No. 14 dated 18th May 2004.

It has been decided that effective 1st March 2005 the new rates of service charges under the captioned scheme, in respect of refinance to be availed by the Participating Financial Institutions (PFIs) approved for providing facilities under the Scheme shall be as under: -

Tenure	Rate of refinancing to banks/DFIs
For borrowers requiring financing upto 2 years.	4.00%p.a.
For borrowers requiring financing over two years but upto 3 years.	4.00%p.a.
For borrowers requiring financing for period over three years and upto maximum period prescribed under the scheme i.e. 7-1/2 years	5.00%p.a.

The PFIs shall continue to remain entitled to earn a maximum spread of 3% on financing provided by them under the scheme.

The above rates shall remain applicable uptill 28th February 2006.

Please acknowledge receipt