June 18, 2006	Sunday	Jumadi-ul-Awwal 21, 1427

KARACHI, June 17: The State Bank on Saturday decided to further relax the instructions regarding trade loans against FE-25 deposits, with a view to facilitating genuine export transactions.

However, the central bank while relaxing the instructions contained in Para (ii) of FE Circular No 16 dated November 1, 2004 in case, maturity of a pre-shipment export loan under FE-25 deposits falls prior to the date of realization of export proceeds, announced that exporters have the option to convert the pre-shipment loan into post-shipment loan.

As per FE circular No 7 issued here on Saturday, this relaxation is applicable provided the maximum period of the loan (both pre-shipment and post-shipment) does not exceed 270 days.—APP