KARACHI (June 26 2003) : The State Bank has allowed banks to avail refinance against limits sanctioned in banks' favour for 2002-03 till finalisation of new limits for 2003-04 or end-September 2003, whichever is earlier.
The export finance limits sanctioned in favour of banks for the year 2002-03 are due to expire on June 30, 2003.
The State Bank in a circular issued on Wednesday said that under the present system the exporters are required to submit the EE statement for the year 2002-03 dully verified by SBP Exchange Policy Department latest by August 31, 2003.
The banks will not be in a position to work out revised entitlement for each exporter to avail facilities under Part-II of the EFS for the year 2003-04.
In order to ensure that the financing facilities are available to the exporters under Export Finance Scheme till finalisation of a) new limits for the banks and b) new entitlement of the limits for each exporter under Part-II, the State Bank decided to allow continuation of limits sanctioned by banks to exporters for 2002-03.
“The State Bank allowed continuation of limits sanctioned by banks to exporters under Part-II of EFS for 2002-03 up to August 31, 2003 to enable the exporters to continue to avail financing facilities under the Scheme pending preparation of EE statements, their verification by SBP Exchange Policy Department and submission by exporters and bank to the refinance unit of the concerned office of SBP latest by August 31, 2003,” said the circular.
As facility under Part-II is self-regulating; the exporters will continue to be required to foresee their export earnings during 2002-03, work out their own estimate as to the quantum of their entitlement for 2003-04 and should accordingly adjust their existing borrowings on or before end-June 2003 to avoid utilisation of excess facilities under EFS during the period of rollover which would be subject to fine, said the circular.
Each bank will be under obligation to explain this requirement to its constituent exporters who have been availing Part-II facilities from it, said the circular.