Circulars/Notifications / Infrastructure, Housing & SME Finance Department  


 SMEFD Circular No. 15 of 2009
October 31, 2009 

The Presidents/ CEOs,
All Banks

Dear Sirs /Madam,

Revision of Financing Rates under the Export Finance Scheme (EFS)


Please refer to SME&MFD Circular No. 22 dated November 30, 2006 and SMEFD Circular No. 06 dated March 09, 2009 along-with other instructions issued from time to time on the captioned subject.

2. It has been decided that rate of refinance under the Export Finance Scheme applicable for the month of November, 2009 and onward till further instructions shall be 7% p.a. The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin / spread does not exceed 1% p.a.

3. The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery shall also attract similar mark up rate structure.

4. Based on the above revision of rate, following benefit will be allowed to exporters based on their export performance against borrowing from SBP under Part-II of EFS as per procedure laid down in SMEFD Circular No. 06 dated March 09, 2009:-

Performance Requirement Mark-up Rate for Borrower Reimbursement Benefit to Borrower
2.00 to 3.00 times 8% p.a. (Standard EFS Rate) Nil
3.01 to 4.00 times 7.5% p.a. 0.5%
4.01 to 5.00 times 7% p.a. 1%
Above 5.0 times 6.5% p.a. 1.5%

5. Other instructions on the subject shall remain unchanged.

Please acknowledge receipt.

Yours faithfully,


Sd/-
(Mansoor H. Siddiqui)
Director


       
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