KARACHI, April 30: The State Bank on Wednesday announced reduction in the rates of export refinance under the export finance scheme for exporters by half per cent from 4pc to 3.5pc with effect from May 1, 2003.

According to the BPD circular No 14 issued to all banks, SBP stated that it has been decided that the rate of refinance under the export Finance Scheme applicable for May 2003 would be 2pc per annum. “The commercial Banks shall, however, ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margins/spread does not exceed 1.5pc per annum.”

The financing facilities under Part-B (Export Sales) of the scheme for financing Locally Manufactured Machinery would also attract similar mark up rate structure, SBP announced.

It may be recalled that the refinance rate under the Export Finance Scheme for exporters has now been reduced from as high as 13pc in July, 2001 to 3.5pc, the SBP pointed out.—APP