SBP amends LTFF scheme for plant, machinery

Saturday June 27, 2009


RECORDER REPORT KARACHI (June 27 2009): The State Bank of Pakistan on Friday announced that Letters of Credit (LCs) for the import of plant and machinery established before the announcement of the LTFF Scheme and retired after June 30, 2007 would also be eligible for financing under Long Term Financing Facility (LTFF). In order to further facilitate the export-oriented industries, SBP has made amendments in LTFF Scheme with immediate effect.

As per amendments LCs (sight and usance) established before the announcement of the LTFF Scheme and retired after June 30, 2007 shall also be eligible for financing under the Scheme. However, LCs, which have been retired through own sources of the sponsors of the export-oriented industries, shall not be eligible under the Scheme.

Financing for plant, machinery & equipment to be used by the export-oriented projects for regeneration of textile waste into usable fibre for producing value-added exportable products shall also be eligible under the subject Scheme.

In addition, refinancing shall be allowed to the extent of 50 percent of financing provided by banks/DFIs to the eligible borrowers availing facilities under para i & ii, while the remaining 50 percent will be financed by the banks/DFIs from their own sources as per the terms & conditions of financing banks/DFIs agreed with the borrowers.


(BRecorder)