As
you are aware that State Bank of Pakistan is providing
refinance facilities under the Export Finance Scheme in
order to fulfill the financing needs of exporters and
to promote the exports of the country. However, it has
been observed that most of the banks are not providing
sufficient financing to Small and Medium Enterprises (SMEs)
under the Export Finance Scheme. In order to further improve
utilization of Export Finance Scheme (EFS) for SMEs, following
additional incentives for banks and exporters are being
made available:-
i.
Banks’ Spread in EFS mark-up rate is being enhanced
from 1% to 2% for SME borrowers only. Therefore, the banks
can charge spread of 2% (currently 1%) under the Scheme
against lending to SMEs from the date of issuance of this
circular without changing prevailing end user rate. SBP
refinance rate will be adjusted accordingly.
ii.
The performance based mark-up rebate under EFS Part-II
has been linked with export performance. Exporters can
avail mark-up rate rebate ranging from 0.5 – 1.5
percentage points depending on the level of export performance
achieved. To encourage SMEs to enhance their exports,
incentives of mark-up rebate have been increased for SMEs
by 0.5 percentage point as compared to corporate exporters
as under:-
| Performance
Requirement |
Mark
up Rate Rebate Other than SME Borrowers |
Mark-up
Rate Rebate for SME Borrowers |
| 2.00
to 3.00 times |
Standard
EFS Rate |
Standard
EFS Rate |
| 3.01
to 4.00 times |
0.5%
p.a. |
1.0%
p.a. |
| 4.01
to 5.00 times |
1.0%
p.a. |
1.5%
p.a. |
| Above
5 times |
1.5%
p.a. |
2.0%p.a. |
The performance based mark-up rate rebate will be allowed
to high performers of SME borrowers against achievement
of high export performance during FY 2013-14 and onward.
iii.
Banks limits under EFS will be linked with utilization
of the available limit for SMEs and banks shall allocate
at least 10% of their limit for SMEs out of the total
limit available under EFS. Accordingly banks can extend
financing to corporate exporters upto a maximum of 90%
of the limit to be sanctioned by the SBP for each financial
year. However, new limits of banks will be adjusted in
a way that existing utilization of corporate borrowers
is not reduced. A reasonable transition period is allowed
to the banks to adjust their limits against corporate
client. SBP BSC Offices will start implementation of this
new mechanism w.e.f. 1st July, 2015. Further, there will
be no cap on utilization of bank’s limit under EFS
for SMEs. However, banks should continue to follow the
regulations regarding maximum exposure against a single
SME prescribed under Prudential Regulations for SMEs.
2.
Any bank claiming refinance facility against financing
provided to SMEs will be required to give a certificate
as per specimen attached herewith, in order to ensure
that refinance is being claimed for SMEs only. Moreover,
banks should mention “Application for SME”
on the top of Refinance Claim Form under Part-I &
II of the Scheme and all other relevant documents to be
submitted by banks/exporters to SBP BSC (Bank), Office,
should also be marked with “For SME” on the
top of each document.
3.
Other instructions on the subject shall remain unchanged.
Encl: One