KARACHI, Aug 31: The State Bank on Thursday said rate of refinance under the export finance scheme for September will be same i.e. 6.5pc per annum as was applicable in August 2006. This rate is four per cent below the Karachi Inter-bank Offered Rate.

“The banks shall charge a maximum margin/spread of one per cent per annum on financing under the scheme and, therefore, final rate of export finance for exporters shall not exceed 7.5 per cent per annum (SBP refinance rate 6.5pc p.a. plus 1pc spread of banks),” the SBP announced.

The financing facilities under part-B (export sales) of export finance scheme for financing locally manufactured machinery will have similar mark-up rate structure.—PPI