All
Banks,
Dear
Sirs,
Export
Finance Scheme -Concessionary Rate of Finanace
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Please refer to BCD Circular No. 6 and 13 dated the 30th March,
1978 and 3rd July, 1978 respectively (copy enclosed for ready
reference) regarding the captioned subject wherein it was clarified
to the banks that in all cases of export finance under the Scheme,
the rate of profit charged to the exporters, shall not exceed
the rate as prescribed from time to time (at present 8%) irrespective
of the fact whether or not refinance is obtained from the State
Bank of Pakistan. It
has come to our notice that some banks are compelling the
exporters to obtain accommodation at the ongoing market rates
in cases qualifying for export finance under the provisions
of the Scheme. This practice besides being against the above
instructions is also causing problems for the exporters, making
the exports costlier and is thus hindering the growth of exports
particularly through Small, Medium and Emerging Exporters.
You
are, therefore advised to please ensure that every exporter
that approaches your bank is provided export finance facility
under both parts of the Scheme on concessionary rates of 8%
per annum if his case is otherwise in order. Any refusal on
the part of a bank to grant export finance shall render it
liable for penal action under the Banking Companies Ordinance
1962.
You
are requested to bring the contents of this circular to the
notice of all the Regional and Zonal offices particularly
those dealing with exporters.
Please
acknowledge receipt.
Encl:
(2)
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| Yours
faithfully,
(Shoaib Ahmed)
Additioanl Director |
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COPY
STATE
BANK OF PAKISTAN
BANKING CONTROL DEPARTMENT
CENTRAL DIRECTORATE
KARACHI
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| BCD
Circular No. 06 |
March
30, 1978 |
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All Banks,
Dear
Sirs,
INTEREST
RATES
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In
modification of BCD Circular No.16 dated 7th July, 1977 it
has been decided that banks shall not charge interest at a
rate higher than 6% per annum on accommodation provided for
financing exports under both parts of the Export Finance Scheme
circulated vide BCD Circular No.29 dated the 11th October,
1977. Banks will be eligible to obtain refinance from the
State Bank at 3% per annum under the scheme.
It
is again clarified that in all cases where export finance
is given under the scheme the interest rate charged to the
exporters shall not exceed 6% whether or not refinance is
obtained from the State Bank.
The
above rates will come into force with immediate effect.
Please
acknowledge receipt
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| Yours
faithfully,
Sd/-
(S.S. Hamid)
Director |
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| |
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COPY
STATE
BANK OF PAKISTAN
BANKING CONTROL DEPARTMENT
CENTRAL DIRECTORATE
KARACHI
|
| BCD
Circular No. 13 |
July
03, 1978 |
|
All Banks, Dear
Sirs,
INTEREST
RATES - EXPORT FINANCE SCHEME
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| Please
refer to BCD Circular No.6 dated the 30th March, 1978 on the
above subject. It has been decided that the banks shall not
charge interest at a rate higher than 3% per annum on credit
provided for financing exports under both parts of the Export
Finance Scheme circulated vide BCD Circular No.29 dated the
11th October, 1977. Banks will be eligible to obtain refinance
from State Bank of Pakistan at Zero rate of interest. It is
clarified that in all cases qualifying for export finance under
the scheme the interest rate charged to the exporters shall
not exceed 3% irrespective of the fact whether or not refinance
is obtained by the bank from the State Bank of Pakistan.
The
above rates come into force with effect from 1st July, 1978.
Please
acknowledge receipt.
|
| Yours
faithfully,
Sd/-
(S.S. Hamid)
Director |
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