All Banks,
Dear
Sirs,
EXPORT
FINANCE SCHEME - EXTENSION OF LIMIT OF 2004-05
As
you are aware that the export refinance limits sanctioned
in favour of banks for the year 2004-2005, are due to expire
on 30-06-2005. You are also aware that under the present
system the exporters are required to submit the EE statement
for the year 2004-05 duly verified by our Foreign Exchange
Operations Department of concerned SBP, BSC, (Bank) latest
by August 31, 2005. Thus the banks shall not be in a position
to work out fresh entitlement for each exporter to avail
facilities under Part-II of the EFS for the year 2005-06.
In order to ensure that the financing facilities are available
to the exporters under Export Finance Scheme till finalization
of new limits for the banks and new entitlement of the limits
for each exporter under Part-II, it has been decided as
under:-
a)
Banks shall continue to avail refinance from offices of
SBP, BSC, (Bank) against overall revolving limits sanctioned
in banks’ favour for 2004-05, till finalization of
new limits for 2005-06.
b)
Limits sanctioned by banks to individual exporters under
Part-II of EFS for 2004-05 shall continue upto August 31,
2005, to enable the exporters to avail financing facilities
under the Scheme pending preparation of EE-1 statements,
their verification by the Foreign Exchange Operations Department,
SBP, BSC, (Bank) and submission of the same to the Refinance
Units of the concerned office of SBP BSC (Bank).
c)
The facility under Part-II is self regulating, the exporters
shall continue to foresee their export earnings during 2004-05,
work out their own estimate as to the quantum of their entitlement
for the 2005-06 and should accordingly adjust their existing
borrowings on or before end June 2005 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.
2.
Banks are therefore advised to clearly intimate their borrowers,
who avail facilities under Part-II of the Scheme the contents
of sub para a to c above. Meanwhile banks may also submit
their requests for limit under the Export Finance Scheme,
including limits for LTF-EOP and also IERS, where applicable,
to us latest by the 31st July, 2005 to enable us to process
the same.
Please acknowledge receipt.