SBP revises financing rates under EFS

Karachi: 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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