SBP commences claims clearance

Export Finance Mark-up Facility

Staff Reporter

KARACHI: State Bank of Pakistan has advised commercial banks and DFIs to approach SBP Banking Services Corporation for processing of pending claims for export finance mark-up rate facility and mark-up rate support for textile sector against long-terms loans.

According to a circular issued on Wednesday, the Ministry of Textile Industry has released necessary budgetary allocation for 2010-11 fiscal to reimburse up-to 32 per cent out of 40 per cent unpaid claims under the Export Finance Mark-up Rate Facility and pending claims under both the schemes for the period from 01-09-2009 to 28-02-2010, said a press release of State Bank.
The Circular said the remaining 8 per cent of the Export Finance Mark up Rate Facility for the period 01-09-2009 to 28-02-2010, shall be released on receipt of necessary budgetary allocation/instructions from Ministry of Textile Industry/ Ministry of Finance.

It may be recalled that during FY 2009-10 offices of SBP-BSC (Bank) have reimbursed 100 per cent mark up rate support against long term loans and 60 per cent Export Finance Mark-up Rate Facility for six months period from 01-09-2009 to 28-02-2010.
However, a few claims were pending with the offices of SBP-BSC due to non-fulfillment of certain terms and conditions of above schemes and/ or other omissions / errors made by the banks/ DFIs/ borrowers.
Following the release of budgetary allocation, Banks /DFIs have been advised to approach respective offices of SBP-BSC within 20 working days with the requisite information and/or to rectify omissions/errors to enable them to process the pending claims for above six months period. Moreover, offices of SBP-BSC will also release Export Finance Mark up Rate Facility to the extent of 32 per cent of total claims against the cases which have been found in order and where 60 per cent reimbursement has already been made. Banks/ DFIs shall immediately pass on this additional reimbursement to the concerned exporters/borrowers, the circular added.

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