KARACHI: The State Bank of Pakistan (SBP) has advised commercial banks and Development Financial Institutions (DFIs) to contact the SBP Banking Services Corporation (SBSC) with regards to the processing of pending claims with respect to export finance mark-up rate facility and mark-up rate support for textile sector against the long-terms loans.
According to SBP circular (SMEFD Circular Letter No 14) issued on Wednesday, the ministry of textile industry has released necessary budgetary allocation for fiscal year 2010-11 to reimburse up to 32 percent out of 40 percent unpaid claims under the export finance mark-up rate facility and pending claims under both the schemes for the period from September 1, 2009 to February 28, 2010.
The State Bank said that the remaining eight percent of the export finance markup rate facility for the period shall be released on the receipt of necessary budgetary allocation and relevant instructions from the ministries of finance and textile industry.
It may be recalled that during FY2009-10 the offices of SBSC (bank) had reimbursed 100 percent mark-up rate support against the long-term loans; and 60 percent export finance mark-up rate facility for the six-month period from Sept 1, 2009 to Feb 28, 2010.
However, the central bank indicated a few claims were pending and held by the offices of SBSC because of failure to comply with certain terms and conditions entailed by the schemes, omissions or errors of the banks, DFIs or borrowers.
It clarified that following the release of budgetary allocation, banks and DFIs have been advised to approach respective offices of SBSC within 20 working days with the requisite information to rectify any omissions or errors to enable them smooth processing of the pending claims for above six months period.
Moreover, the offices of SBSC would also release export finance mark up rate facility to the extent of 32 percent of total claims against the cases which had been found in order and where 60 percent reimbursement had already been made, the bank said.
The statement indicated that
banks and DFIs shall immediately pass on this additional reimbursement to the concerned exporters and borrowers.
