Export mark-up rate: Banks, Development Finance Institutions to pay 40pc subsidy

Karachi: The State Bank has advised banks and Development Finance Institutions (DFIs) to make 40 per cent payment of 2nd instalment of mark-up subsidy under the schemes of Export Finance Mark-Up Rate Facility and Mark-up Rate Support for textile sector against long- term loans.

Banks and DFIs were advised to make 40 per cent payment of 2nd instalment of mark-up subsidy for the period from March 1, to August 31, 2010 under the said schemes.

The State Bank said the ministry of textile industry has not issued sufficient money to clear 100 per cent claims of banks and DFIs.

The SBP issued a circular on Friday to clarify the situation as it said that budgetary allocation of the ministry of textile and industry is not sufficient to clear 100 per cent claims under both the schemes for six months period.

Therefore, it has been decided in consultation with the ministry that claims of banks and DFIs may be cleared to the extent of 40 per cent under these schemes.

It said the disbursing branches of banks and DFIs may seek its reimbursement from the concerned offices of the SBP-BSC.

Each claim should invariably be accompanied with a duly attested copy of ministry’s registration certificate, said the circular.

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