Timeline
Monetary Easing Cycle

Scheme in Brief

This time bound Refinance Facility for Combating COVID-19 (RFCC) aims at enhancing the capacity of health sector of the country to deal with health emergency especially in the backdrop of COVID-19. Financing under the facility is available through banks/DFIs for all hospitals/medical centers not only to combat COVID-19 but also to enhance their overall capacities. Manufacturers of masks/protective dresses/testing kits/hospital beds/ventilators and other items to combat COVID-19 can also get advantage of this special financing opportunity.

Features
    Eligibility

i. Hospitals, medical centers registered with Provincial/Federal agencies/commissions and manufacturers of masks/protective dresses/testing kits/hospital beds/ventilators and other items to combat COVID-19.

ii. Financing can also be availed for setting up of new hospitals or expansion of the existing hospitals and medical centers subject to minimum conditions.

iii. Financing against existing equipment and purchase of refurbished equipment is also allowed.


  • Maximum Loan Limit:
  • (i) Rs 500 million per hospital/medical centre
  • (ii) Rs 1,000 million for setting up of new hospitals

  • Rate: End user rate 3% p.a. , SBP Refinance rate is 0%  

  • Tenor: 5 Years with grace period of 6 months

  • Repayment: Quarterly/ half-yearly basis

  • Validity:

    • (i) September 30, 2020 except for new hospitals. However, LCs established under approved applications till September 30, 2020 are eligible for refinance even if these LCs are established after the mentioned date (September 30, 2020)

    (ii) Validity for New Hospital is June 30, 2021
Performance
Mobirise

Rs.21.89 billion has been requested under RFCC against of which Rs 17.79 billion has been approved.

  • This is the first time that SBP has issued a refinance scheme for Health sector given its utmost importance due to the prevalent pandemic.
  • This concessionary financing facility has enabled hospitals /medical centers to enhance their capacities mainly in terms of building COVID specific isolation wards and increasing number desired machinery such as ventilators.
  • The scheme is also available for establishment of new hospitals.

Timeline

September 29, 2020

SBP clarifies status of approved cases and enhances loan limit for setting up of new hospitals

Regarding validity of the scheme (Sep 30,2020), SBP on September 29, 2020 issued instructions that all applications approved by Banks/DFIs up till September 30, 2020 will be eligible for refinance under Refinance Facility for Combating COVID-19/Islamic Refinance Facility for Combating COVID-19. Hence, LCs established under these approved applications will be eligible for refinance even if these LCs are established after September 30, 2020.

Further, to meet financing needs for setting up of new hospitals, SBP enhanced the loan size from Rs. 500 million to Rs. 1 billion per hospital.

Circular:
https://www.sbp.org.pk/smefd/circulars/2020/CL26.htm 

July 06, 2020

SBP enhances scope of refinance facility to support health facilities

SBP on July 06, 2020 enhanced the scope of RFCC/IRFCC by allowing hospitals serving patients even other than COVID-19 and manufacturers of protective gears and other equipment including masks, dresses, testing kits, hospital beds, ventilators etc. to avail financing under the facility. Moreover, financing can also be availed for setting up of new hospitals or expansion of the existing hospitals and medical centers subject to certain conditions.

Circular:
http://www.sbp.org.pk/smefd/circulars/2020/CL16.htm 

April 30, 2020

Enhanced financing limit of Rs.500 mn for single hospital

On April 30, 2020, SBP enhanced the financing limit of a single hospital/medical center under its Refinance Facility from Rs 200 mn to Rs 500 mn to strengthen health sector in fight against COVID-19.

Circular:
http://www.sbp.org.pk/smefd/circulars/2020/CL8.htm 

April 06, 2020

On April 06, 2020, SBP further facilitated the health sector by allowing financing against existing equipment and purchase of refurbished equipment for creating special facility/isolation ward to deal with COVID-19. Moreover, maximum coverage of 60% of civil works for setting up separate/isolation facility has also been enhanced to 100%.

Circular:
http://www.sbp.org.pk/smefd/circulars/2020/CL6.htm 

March 24, 2020

Advance Payments for medical equipment and medicines allowed

SBP has allowed all federal and provincial government departments, hospitals in public and private sectors, charitable organizations, manufacturers and commercial importers to make Import Advance Payment and Import on Open Account, without any limit, for the import of medical equipment, medicines and other ancillary items for the treatment of COVID-19. Further, the banks have been allowed to approve Electronic Import Form (EIF) for import of the equipment, donated by international donor agencies and foreign governments to facilitate their seamless and speedy imports.

Circular:
http://www.sbp.org.pk/epd/2020/FECL9.htm 

March 17, 2020

SBP announced a Refinance Facility for Combating COVID-19 (RFCC)

SBP on March 17, 2020, announced a Refinance Facility for Combating COVID-19 (RFCC) and its Shariah compliant version to support hospitals and medical centers in combating the spread of COVID-19. Under this scheme, the SBP will refinance banks at 0% to provide financing at a maximum end-user rate of 3% for 5 years. The total size of the scheme is Rs5 billion, with a maximum financing limit per hospital or medical center of Rs200 million.

Circulars:

Conventional:
http://www.sbp.org.pk/smefd/circulars/2020/C3.htm

Islamic:
http://www.sbp.org.pk/smefd/circulars/2020/C4.htm 

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