With
a view to revitalize SMEs in NWFP, Gilgit-Baltistan
(GB) and FATA it has been decided to provide refinancing
facilities from SBP to Small & Medium Enterprises
(SMEs) only as defined under Prudential Regulations
of SMEs.
A:
Short Term / Working Capital Facility
Under
the Scheme banks may provide short term facilities
up-to a maximum period of one year to SME units of
all categories, of above areas to meet working capital
requirements. Rates of service charges shall be determined
on the basis of Weighted Average Yield of six months
Treasury Bills. These rates may be adjusted on monthly
basis. Following service charges and rates for end
users have been fixed under the Scheme:-
Rate
of Refinance |
Banks’
Spread |
End
Users’ Rate |
6.50% |
2.00% |
8.50% |
B:
Medium & Long Term Facility
Under
the Scheme banks may also provide Medium & Long
Term Facilities for Balancing Modernization and Replacement
(BMR)/Up-gradation of existing SME units or installation
/ setting-up of new SME units in NWFP, GB and FATA.
Medium & long term facilities under the Scheme
shall be available for purchase / import of plant,
machinery and equipments and investment in construction
of factory / office / warehouse; and allied infrastructure.
Financing facilities shall be provided for a maximum
period of 7 years including a grace period of six
months. Rates of service charges shall be determined
on the basis of Weighted Average Yields of PIBs of
relevant tenors. These rates may be adjusted on six
monthly basis. Following service charges and rates
for end users have been fixed under the Scheme:
Tenor |
Rate
of Refinance |
Banks’
Spread |
End
Users’ Rate |
Up-to
3 years |
7.20% |
2.00% |
9.20% |
Over
3 years and up-to 5 years |
7.20% |
2.50% |
9.70% |
Over
5 years and up-to 7 years |
7.25% |
3.00% |
10.25% |
2.
Financing availed under the Scheme shall have to be utilized
for investment in SME units located in NWFP, GB and FATA
only. The details of the Scheme are given in attached
Annexures.
3.
Under the Scheme yearly targets / refinance limits shall
be allocated to each bank having branches in above areas.
4.
The Scheme shall be effective from the date of issuance
of this Circular and shall remain valid up-to December
31, 2012.
Encl:
(i) Scheme (ii) Documents