Banks asked to reimburse mark-up to exporters
Textile ministry releases funds.
KARACHI:
The State Bank of Pakistan (SBP) has said that it has advised commercial banks and development finance institutions (DFIs) to process pending claims with respect to Export Finance Mark-up Rate Facility and Mark-up Rate Support for Textile Sector.
In this regard, the SBP asked banks and DFIs to approach the SBP Banking Services Corporation (BSC). According to a circular issued on Wednesday, the central bank said the Ministry of Textile Industry has released funds for reimbursing up to 32 per cent out of 40 per cent of un-paid claims under the Export Finance Mark-up Rate Facility and pending claims under both the schemes for the period from September 1, 2009 to February 28, 2010.
It said the remaining eight per cent of the Export Finance Mark-up Rate Facility will be released on receipt of necessary budgetary allocation or instructions from the textile or finance ministry.
During financial year 2009-10, the SBP-BSC reimbursed 100 per cent mark-up rate support against long-term loans and 60 per cent mark-up rate facility for six months from September 1, 2009 to February 28, 2010. However, a few claims were pending due to non-fulfillment of certain terms and conditions and omissions or errors made by banks, DFIs and borrowers.
Published in The Express Tribune, December 23rd, 2010.
The State Bank of Pakistan (SBP) has said that it has advised commercial banks and development finance institutions (DFIs) to process pending claims with respect to Export Finance Mark-up Rate Facility and Mark-up Rate Support for Textile Sector.
In this regard, the SBP asked banks and DFIs to approach the SBP Banking Services Corporation (BSC). According to a circular issued on Wednesday, the central bank said the Ministry of Textile Industry has released funds for reimbursing up to 32 per cent out of 40 per cent of un-paid claims under the Export Finance Mark-up Rate Facility and pending claims under both the schemes for the period from September 1, 2009 to February 28, 2010.
It said the remaining eight per cent of the Export Finance Mark-up Rate Facility will be released on receipt of necessary budgetary allocation or instructions from the textile or finance ministry.
During financial year 2009-10, the SBP-BSC reimbursed 100 per cent mark-up rate support against long-term loans and 60 per cent mark-up rate facility for six months from September 1, 2009 to February 28, 2010. However, a few claims were pending due to non-fulfillment of certain terms and conditions and omissions or errors made by banks, DFIs and borrowers.
Published in The Express Tribune, December 23rd, 2010.