KARACHI: Banks and DFIs have approved over Rs10 billion financing for hospital and medical centers under the State Bank of Pakistan’s Refinance Facility for Combating COVID-19 (RFCC).

The SBP on March 17, 2020, announced RFCC and its Shariah-compliant version to support hospitals and medical centers in combating the spread of COVID-19. Under this scheme, the SBP refinances the banks at zero (0) percent to provide financing at a maximum end-user rate of 3 percent for 5 years. The scheme is also available for establishment of new hospitals.

Hospitals, medical centers registered with provincial, federal agencies, commissions and manufacturers of masks, protective dresses, testing kits, hospital beds, ventilators and other items to combat COVID-19 were eligible to apply for financing under this scheme.

Over the last one year, overall 48 hospitals or medical centers requested for Rs16.668 billion financing under the RFCC. Out of received applications, banks and DFIs have approved 44 cases of Rs10.523 billion. The scheme has been matured except for new hospitals that will continue till June 30, 2021.

This is the first time that SBP has issued a refinance scheme for Health sector given its utmost importance due to the prevalent pandemic. Banker said that this concessionary financing facility has enabled hospitals/medical centers to enhance their capacities mainly in terms of building COVID specific isolation wards and increasing number desired machinery such as ventilators.

Initially, maximum financing limit per hospital or medical center was Rs200 million, however later, to meet financing needs for setting up of new hospitals, the SBP enhanced the loan size up to Rs1 billion per hospital.

Copyright Business Recorder, 2021