KARACHI (December 31 2002) : The State Bank on Monday announced a further cut in the export refinance rate by one percent, making money more cheaper for the exporters.
“The State Bank announced the reduction in the rates of export refinance under the Export Finance Scheme for exporters by one percent ie from 7 percent to 6 percent with effect from January 1, 2003,” said a circular issued by the SBP.
The circular said that it has been decided that the rate of refinance under the export finance scheme applicable for the month of January 2003 will be 4.5 percent per annum.
The commercial banks will, however, ensure, where financing facilities are extended by them to the exporters for availing refinance facilities under the Scheme, that their maximum margin, or spread, does exceed 1.5 percent per annum.
The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery will also attract similar mark-up rate structure. The refinance rate under the Export Finance Scheme for exporters has now been reduced to 6 percent from 13 percent in July, 2001.