KARACHI (February 01 2003) : The State Bank of Pakistan on Friday further cut the export refinance rate by 0.5 percent, enabling the exporters to get cheaper money in the wake of falling interest rates.
On December 31, 2002, the State Bank had cut the export finance rate by one percent from 7 percent to 6 percent.
“It has been decided that the rate of refinance under the Export Finance applicable for the month of February, 2003, will be 4 percent per annum,” said a circular issued by the SBP.
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 not 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 5.5 percent from 13 percent in July 2001.
