The
facility will be available to the exporters either for
purchase of inputs domestically and for financing their
imports of inputs and raw materials against import letter
of credit to be opened for that portion of export order
that will be utilized by them for export purposes.
The
Foreign Currency Export Finance (FCEF) facility will be
a dollar based window and self liquidating and will be
available for pre and post shipment finance. Under this
scheme market based export finance will be available to
Small and Medium sized Direct Exporters (DE) and also
their suppliers i.e. Indirect Exporters (IDE) for inputs
linked to an export order. The facility will run parallel
to the existing Export Finance Scheme (EFS) of the State
Bank of Pakistan as an additional and alternate facility.
Any export order, export letter of credit or any other
customary export document which evidence a firm export
order will not be eligible for grant of any other facility
such as Part I and Part II of the EFS to the extent of
FCEF exposure. The financing of inputs under the FCEF
facility would be available for a maximum period of 180
days for both DE and IDE from the date of drawdown of
the facility.
The
items not eligible to be financed under the Scheme will
include (i) arms ammunition and other military material,
(ii) radioactive and associated material, (iii) nuclear
reactors or parts thereof, fuel (cartridges), non irradiated
nuclear reactors, (iv) luxury items, (v) consumer goods,
and (vi) such other goods and materials as may be specified
from time to time. The rates of fine as are applicable
under Export Finance Scheme, shall also apply on the facilities
availed by borrowers / banks under the FCEF Scheme.
PCBs
which have met, and continue to meet, the SBP's prudential
banking regulations on minimum paid-up capital requirement,
the income recognition, provisioning standards and minimum
capital adequacy ratios will be eligible to avail financing
for the benefit of their exporters from this FCEF window.
The
covenants of the Scheme are enclosed. The scheme shall
be effective as from 2nd April 2001.
Encl:
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