As
you are aware that the export refinance limits sanctioned
in favour of banks for the year 2002-2003, are due to expire
on 30-06-2003. You are also aware that under the present system
the exporters are required to submit the EE statement for
the year 2002-03 duly verified by our Exchange Policy Department
latest by August 31, 2003. Thus the banks shall not be in
a position to work out revised entitlement for each exporter
to avail facilities under Part-II of the EFS for the year
2003-04. In order to ensure that the financing facilities
are available to the exporters under Export Finance Scheme
till finalization of a) new limits for the banks and b) new
entitlement of the limits for each exporter under Part-II
it has been decided: -
a)
to allow banks to avail refinance from offices of our
subsidiary against limits sanctioned in banks’
favour for 2002-03 till finalization of new limits
for 2003-04 or end September 2003 which ever is earlier.
b)
allow continuation of limits sanctioned by banks to
exporters under Part-II of EFS for 2002-03 upto August 31,
2003, to enable the exporters to continue to avail financing
facilities under the Scheme pending preparation of EE statements,
their verification by our Exchange Policy Department and submission
by exporters/bank to the refinance unit of the concerned office
of SBP BSC (Bank) latest by August 31, 2003.
As the
facility under Part-II is self regulating, the exporters shall
continue to be required to foresee their export earnings during
2002-03 work out their own estimate as to the quantum of their
entitlement for 2003-04 and should accordingly adjust their
existing borrowings on or before end June 2003 to avoid utilization
of excess facilities under EFS during the period of roll over
which would be subject to fine. Each bank shall be under obligation
to explain this requirement to its constituent exporters who
have been availing Part-II facilities from it.
Please
acknowledge receipt.
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