KARACHI: The State Bank of Pakistan on Friday enhanced financing limit from Rs200 million to Rs500m for single hospital/medical centre under its Refinance Facility for Combating Covid-19 (RFCC).

The SBP further reiterated its support for the health sector in the ongoing pandemic. SBP’s RFCC is an emergency funding facility to support hospitals/medical centers to develop their capacities for treatment of Covid-19 patients. Financing under this facility is being made available by the SBP at zero per cent to banks that can charge a maximum rate of 3pc per annum to hospitals.

The health sector is also making efforts to get financing available at much cheaper rates; almost one third of policy interest rate which is currently now 9pc.

The central bank said it has been continuously improving features of the RFCC to ensure timely financial support to hospitals and medical centers engaged in combating Covid-19.

“So far, financing of Rs2.2 billion for 11 hospitals and medical centers has been approved whereas financing requests of Rs 3.6bn for 23 hospitals and medical centers are being processed by the banks,” said the SBP.

With the enhancement of financing limit up to Rs500m, it is expected that large scale facilities will be created for treating Covid-19 patients by using subsidised funding being extended under the RFCC, the bank added.

Published in Dawn, May 2nd, 2020