The Presidents/ CEOs,

All Banks/DFIs

Dear Sirs /Madam,

Long Term Financing Facility (LTFF)
for Plant & Machinery: – eligibility thereof

Please refer to Schedule 1 attached with LTFF Scheme which was circulated vide MFD Circular No. 07 dated December 31, 2007 and amended from time to time.

2. It is advised that henceforth financing for plant, machinery & equipment to be used by the export oriented projects in following sub-sectors/processes of Spinning Sector shall also be eligible under the subject Scheme:-

i) Doubling,
ii) Twisting,
iii) Combing,
iv) Slubbing,
v) Lycra, &
vi) Yarn Dyeing.

3. SBP will refinance upto 50% of the financing facilities to be provided by the banks/DFIs to the eligible borrowers of above six sub-sectors / processes of Spinning Sector under LTFF Scheme while the remaining 50% will be financed by the banks/DFIs from their own sources at lending rates of respective lending institutions as agreed with the borrowers.

4. All other instructions issued on the subject shall remain unchanged.