KARACHI, July 30: The State Bank on Friday decided that rate of refinance under the Export Finance Scheme applicable for the month of August 2004 would be 2.5 per cent per annum.

According to a BPD circular No 26 issued here, the commercial banks, however, would ensure that where the financing facilities are extended by them to the exporters for availing refinancing facilities under the Export Finance Scheme, their maximum margin/spread does not exceed 1.5 per cent per annum.

The financing facilities under part-B (export sales) of the scheme for financing locally manufactured machinery would also attract mark-up rate structure. However, other instructions on the subject would remain unchanged, the SBP states. -APP