KARACHI (June 25 2004): The State Bank of Pakistan (SBP) on Friday has allowed banks to continue to avail refinance from the SBP against overall revolving limits sanctioned in banks' favour for 2003-04 till finalisation of new limits for 2004-05.
The export refinance limit sanctioned in favour of banks for fiscal 2003-04, are due to expire on June 30, 2004.
Under the present system, the exporters are required to submit the EE statement for 2003-204 duly verified by Foreign Exchange Operations Department of concerned SBP, BSC, (Bank) offices latest by August 31, 2004.
“The banks shall not be in a position to work out fresh entitlement for each exporter to avail facilities under Part-II of the EFS for 2004-05,” said an SBP release.<br>
In order to ensure that the financing facilities are available to the exporters under the Export Finance Scheme (EFS) till finalisation of new limits for the banks, and new entitlement of the limits for each exporter under Part-II, it has been decided; “Banks shall continue to avail refinance from the offices of SBP, BSC, (Bank) against overall revolving limits sanctioned in banks' favour for 2003-04 till finalisation of new limits for 2004-05.”
Limits sanctioned by banks to individual exporters under Part-II of EFS for 2003-04 will continue up to August 31, 2004, to enable the exporters to avail financing facilities under the Scheme pending preparation of EE-I statements, their verification by the Foreign Exchange Operations Department of SBP BSC (Bank) and submission of the same to the Refinance Units of the concerned office of SBP BSC (Bank).
The facility under Part-II is self regulating, the exporters will continue to foresee their export earnings during 2003-04, work out their own estimate as to the quantum of their entitlement for the 2004-05, and should accordingly adjust their existing borrowings on or before end June 2004 to avoid utilisation of excess facilities under EFS during the period of roll over which would be subject to fine.
Each bank shall be under obligation to explain this requirement to its constituent exporters, who have been availing Part-II facilities from it.
The requests for fresh limit for 2004-05 by each bank is required to be submitted to the SBP latest by the July 15, 2004.