SBP keeps export finance rates unchanged

Staff Report

KARACHI: The State Bank of Pakistan (SBP) left the Export Finance Scheme (EFS) rates unchanged at 9 percent for August, 2005, the SPB said in a circular here on Saturday.

In a statement, the SBP said: “ The rate of refinance under the Export Finance Scheme applicable for the month of August 2005 shall be 7.5 percent per annum.”

“The commercial banks shall, however, ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the EFS, their maximum margin / spread does not exceed 1.5 percent per annum,” said the circular.

The financing facilities under Part-B (Export Sales) of the Scheme for financing locally manufactured machinery shall also attract similar mark up rate structure. In the month of July 2005, the central bank increased the export refinance rate by 1.5 percent to 8 percent.

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