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SBP revises financing rates under EFS

July 8, 2014

State Bank of Pakistan has revised the markup rate for exporters availing financing facilities under Export Finance Scheme (EFS) that will be 7.5% p.a. with effect from July 01, 2014.

Banks' spread for Corporate borrowers and SME borrowers will remain unchanged i.e. 1% & 2% respectively, according to IH & SMEFD Circular No. 05 0f 2014.

The revised markup rate would also be applicable on outstanding loans granted under EFS. Accordingly, all banks are advised to re-price their outstanding loans granted under EFS.

In order to reconcile the position of re-priced loans, banks should submit particulars of outstanding loans re-priced by the bank under EFS on prescribed annexure-I to the concerned SBP BSC office(s) within 10 days from announcement of this circular.

The reimbursement of mark-up rate benefit to exporters, on excess performance under Part-II of the Scheme, as specified in SMEFD Circular No.15 dated October 31, 2009 and IH & SMEFD Circular No. 01 of 2014, will be adjusted accordingly keeping in view the revised mark-up rates. Other instructions on the subject shall remain unchanged.

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Source: Pakistan Press International

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