The Presidents / CEOs,
All Banks/DFIs

Dear Sirs /Madam,

Payment of Pending / Outstanding Claims of Export Finance Mark-Up Rate Facility and Mark up Rate Support for Textile Sector against Long Term Loans - For the Period From 01-09-2009 To 28-02-2010

Please refer to SMEFD Circular Nos. 03 & 04 dated March 22, 2010 regarding above referred Mark up Rate Facilities for the Textile Sector.

2. It may be recalled that during FY 2009-10 offices of SBP-BSC (Bank) have reimbursed 100% Mark up Rate Support against Long Term Loans; and 60% Export Finance Mark-up Rate Facility, for six months period from 01-09-2009 to 28-02-2010. However, a few claims were pending with the offices of SBP-BSC (Bank) due to non-fulfillment of certain terms & conditions of above Schemes and / or other omissions / errors made by the banks/DFIs / borrowers.

3. Now Ministry of Textile Industry has released necessary budgetary allocation for FY 2010-11 to reimburse up-to 32% out of 40% un-paid claims under Export Finance Mark-up Rate Facility and pending claims under both Schemes for the period from 01-09-2009 to 28-02-2010.

4. Accordingly, Banks /DFIs are advised to approach respective offices of SBP-BSC (Bank) within 20 working days with the requisite information and/or to rectify omissions / errors to enable them to process pending claims for above six months period. Further, offices of SBP-BSC (Bank) will also release Export Finance Mark up Rate Facility to the extent of 32% of total claims against the cases which have been found in order and where 60% reimbursement has already been made. Banks/DFIs shall immediately pass on this additional reimbursement to the concerned exporters / borrowers.

5. Remaining 8% of the Export Finance Mark up Rate Facility, for the period 01-09-2009 to 28-02-2010, shall be released on receipt of necessary budgetary allocation / instructions from Ministry of Textile Industry / Ministry of Finance.