The
Head Offices/Principal Offices of
Authorized Dealers in Foreign Exchange..
Dear
Sirs,
Foreign Currency Export
Finance (FCEF) Facility – Modifications for
Enhanced Access of Credit lines to banks
Please refer to the instructions issued vide F. E. Circular
No.04 dated 28th March 2001 on the above subject.
In
view of the recent changes in the market environment and
the low utilization of the FCEF (“the Facility”)
the Asian Development Bank and the State Bank have revisited
the Facility and have agreed to modify its provisions to
enhance utilization by the banks and exporters.
The
SBP, Banking Policy Department (Apex Unit) will henceforth
allocate funds under the Facility in the form of credit
lines to eligible banks. The funds will be allocated on
the banks’ request supported by documents and expected
financing of exports to eligible exporters.
Banks
wishing to avail credit lines under the Facility are advised
to specify their actual requirement for the current quarter
and projections for the next quarter in their request. The
credit lines will be given in accordance with the criteria
agreed between SBP and the ADB as specified in the attached
circular.
The
modifications are enclosed herewith for the information
of all Authorized Dealers in foreign exchange. This Circular
supersedes FE Circular No. 04 dated 28th March 2001.
Please
bring the above change to the notice of your constituents.
Encl: As above.