August 11, 2007	Saturday	Rajab 26, 1428

KARACHI, Aug 10: State Bank Governor Dr Shamshad Akhtar on Friday said that all eligible exporters would get refinance as per their entitlement from the scheduled banks and in case of problem the SBP should be informed.

Allaying the fears of exporters the governor said that the SBP would take serious action against banks for not giving refinance to eligible exporters irrespective of their size and business volume.

A delegation of Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea) led by Fawad Ijaz Khan expressed their fears over the working of new refinance scheme announced by the SBP recently.

They apprehended that under the new policy the commercial banks would give preference to low-risk customers whereas high-risk SME exporters would not get the refinance.

It was specifically pointed out that since the SBP had fixed the refinance ceiling and they would be reluctant to increase this ceiling from their own funds, which would create a lot of hardship for small and medium size exporters in getting concessionary funding for export.

The governor asked the Plgmea to furnish bank-wise details of export refinance obtained by leather garment exporters during year 2005-06 and 2006-07.

Mr Fawad informed the SBP governor that exports of leather garments had registered 23 per cent decline during July-June 2007 as compared to 2006. The main reason for this decline is high cost of production.

As a result of this many exporters will not be able to fulfil their target and will need some relaxation in loans obtained under export refinance scheme Part-I and EFS Part II from the SBP. It was also requested that 90 days extension be allowed for repayment in both the parts of the scheme for 2006-07 to the leather garment exporters.