The central bank has decided to cut the rate of refinance under the Export Finance Scheme (EFS) by 0.1 percentage point from February 1 (today).
This is the second rate cut announced by the State Bank of Pakistan (SBP) in a month. Earlier, it had reduced the refinance rate by 0.2 percent.
“It has been decided that the rate of refinance under the Export Finance Scheme applicable from February 01, 2013 and onward will be 8.20 percent p.a. till further instructions,” said the State Bank on Thursday.
The central bank, through a circular, asked commercial banks to ensure that where financing facilities were extended by them to the exporters for availing refinance facilities under the EFS, their maximum margin/spread does not exceed 1 percent per annum.
The SBP circular said the revised reduced mark-up rate would also be applicable on outstanding loans granted under EFS. Accordingly, the SBP advised banks to immediately re-price their outstanding loans granted under the EFS, keeping in view the revised reduced mark-up rate. Simultaneously, SBP-BSC offices would also apply reduced mark-up on outstanding refinance loans granted under EFS. To reconcile the position of re-priced loans, the banks should submit particulars of outstanding loans re-priced by the bank under EFS on the prescribed format to the concerned SBP-BSC office(s) within 10 days from January
31.
