KARACHI, Aug 10: The State Bank on Thursday announced more benefits for the exporters as interest rate on old borrowings was curtailed and matched with the new reduced rate.

The SBP explained the benefits of borrowing under the scheme for long term financing for the export-oriented projects (LTF-EOP). It said that instructions regarding reduction in spread of banks and DFIs on financing provided by them under the LTF-EOP scheme are also applicable to the loans sanctioned or disbursed prior to the issuance of new circular.

The State Bank in a circular issued on July 14, had reduced the interest rate for the benefits of the export oriented projects.

“Banks and DFIs are advised to revise their rates of finance on the loans outstanding under LTF-EOP scheme effective from July 14, 2006 so as to pass on the benefit of reduction in spread to the borrowers of export oriented projects,” said the circular issued by the SBP on Thursday.