KARACHI, Jan 31: The State Bank has decided to keep unchanged its export refinance rate at 1.5 per cent in February 2004. Thus the exporters will continue to get export finance from banks at 3 per cent markup in that month.

The SBP issued a circular to all banks on Saturday to notify this decision.

Banks are allowed to charge a maximum 1.5pc markup on export refinance rate of SBP while offering export loans to eligible exporters. SBP refinance rate is linked with the cut-off yield on six-month treasury bills.

SBP revises its export refinance rate when the T-bills cut-off move up or down. The reason for keeping the refinance rate intact is the stability in the TBs rate.