June 29, 2002	Saturday	Rabi-us-Sani 17, 1423

KARACHI, June 28: The exporters will continue to get export finance from the banks at a maximum markup of 8 per cent in July 2002 as the State Bank of Pakistan has left the export refinance rate unchanged at 6.5 per cent. The central bank notified the new export refinance rate to all the banks through a circular issued here on Friday.

“It has been decided that the rate of refinance under the export finance scheme notified...dated 30th March i.e. 6.5 per cent per annum shall continue to be applicable during the month of July,” says the circular BPD no 15.

“The commercial banks shall, however, ensure that where financing facilities are extended by them to the exporters under the scheme, their maximum margin/spread does not exceed 1.5 per cent.”

This means the banks can offer export finance to the exporters at a rate 1.5 per cent higher than the rate at which they claim export refinance from the State Bank. Since the central bank is going to give them export refinance at 6.5 per cent in July the banks would be charging 8 percent markup on export finances.