The State Bank has decided to continue with the prevailing rate of return for export refinancing. "It has been decided that the rate of refinance under the Export Finance Scheme, ie 2.5 percent p.a. will continue to be applicable for the month of September 2004," said a circular issued by the SBP on Tuesday.
The commercial banks will, however, ensure that where they extend financing facilities to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin or spread does not exceed 1.5 percent p.a., it added.
The financing facilities under Part-B (Export Sales) of the Scheme for financing locally manufactured machinery also attract similar mark-up rate structure.
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