Effective
September 1, 2009 the Government of Pakistan has announced
‘Export Finance Mark-Up Rate Facility’ of
2.5% to the exporters of Textile Industry on outstanding
loans availed by the industry from commercial banks
for export of eligible commodities under SBP’s
Export Finance Scheme (EFS) vide Ministry of Textile
Industry’s Notification No. 3 (2) TID/ 09-P-I
dated 1st September, 2009 (copy
enclosed).
2.
Pursuant to the release of budgetary allocation by the
Ministry of Finance for payment of above Facility for
six months ending on 28th February, 2010, following
procedure has been devised in consultation with Ministry
of Textile Industry, for payment of Export Finance Mark-Up
Rate Facility to the eligible exporters of Textile Industry:-
(i)
The Facility shall be admissible to the extent of
2.5% p.a. on the outstanding finance facility to Textile
Industry under SBP’s Export Finance Scheme (EFS).
(ii) The amount of Facility shall be paid
by the banks to the eligible exporters at their respective
branches, provided the borrowers have on-line Registration
Certificate issued by Ministry of Textile Industry
during the validity of the same.
(iii) The amount of export refinance outstanding on
August 31, 2009 under EFS and the amount of refinance
availed by the banks against financing facilities
provided to exporters of Textile Industry after said
date shall qualify for the facility.
(iv) Export finance facilities provided by the banks
from their own sources i.e. where banks have not availed
refinance under EFS shall not qualify for the facility.
(v) The Facility shall be admissible only for the
numbers of days refinance facility remains outstanding
under EFS.
(vi) The facility shall be paid by the commercial
banks on six month basis in March and September each
year subject to the release of necessary budgetary
allocation by the Federal Government for relevant
fiscal year. Accordingly, Facility for six months
ending on 28th February 2010 (from 01-09-2009 to 28-02-2010)
shall be paid from the date of issuance of this circular
up-to April 23, 2010. However, final dates for payment
of Facility in the next period shall be announced
separately on receipt of budgetary allocations from
Government of Pakistan.
(vii) Amount of Mark up Rate Facility payable in March-April
2010 shall be calculated on the basis of amount of
export refinance which remained outstanding during
six months period from 01-09-2009 to 28-02-2010 on
daily product basis.
(viii) However, the banks shall pay the markup
subsidy to the eligible borrowers to the extent of
60% of total amount worked for six months period from
01-09-2009 to 28-02-2010. The remaining amount of
subsidy will be provided upon receipt of funds from
Ministry of Finance as and when received.
3.
After making payments of Facility, the concerned branch
of banks can seek its reimbursement from the concerned
office of the SBP-BSC (Bank) as per these guidelines
and on submission of application as per the format attached
to this circular. Offices of SBP-BSC (Bank) shall check
claims of the banks as per their own record.
4. Each claim will invariably be accompanied with a
duly attested copy of Ministry of Textile Industry Registration
Certificate as mentioned above. The said registration
certificate shall be attested jointly by the branch
manager and concerned officer of the branch after seeing
the original one. It must be noted that claims will
only be accepted within the validity period of such
Certificates.
5.
Applications duly completed in all respects shall be
processed by the offices of SBP-BSC subject to the condition
that documents as mentioned in Application Form have
been enclosed with the applications, which shall be
subject to subsequent detailed scrutiny. In case SBP
or its authorized representatives subsequently conclude
that the Facility was availed on the basis of incomplete
/ incorrect information, or that the same was claimed
wrongfully, the amount of Facility so paid shall be
recovered by debit to the account of the bank concerned.
On removing the irregularities to the satisfaction of
the concerned office the Facility shall be reinstated.
However no benefit whatsoever shall accrue to the bank
or the borrower for the period, the Facility was discontinued.
In case the banks fails to remove the objection raised
by SBP or its representatives within 30 days the case
will be treated as closed. No claim for six months ending
on 28th February 2010 shall be entertained after April 23, 2010. Banks are, therefore, advised
to ensure that all eligible cases are submitted by their
concerned branches to the respective offices of SBP
BSC (Bank) as per schedule.
6.
State Bank shall not accept liability of whatsoever
nature where a bank has failed to submit its request
for payment of Facility within the validity of the Scheme,
regardless of the fact that delay in submission of fresh
request or re-submission of request for payment of Facility
pursuant to action taken in terms of Para 3 above was
on account of the inability of the bank or the beneficiary
of the Facility i.e. borrower.
7.
No service charges, fee etc. of whatsoever nature shall
be recovered by the bank from the exporter(s) for processing
of these claims.
8.
Banks are advised to properly and promptly circulate
these instructions to their branches and constituents
for meticulous compliance.
Encl: As above