State Bank revises rates of service charges under two financing schemes

Karachi: State Bank of Pakistan SBP Friday revised rates of service charges for banks, Development Finance Institutions DFIs and rates for end users under Long Term Financing Facility LTFF Scheme & Scheme for Financing Power Plants Using Renewable Energy with effect from 1st July, 2011.

The rates of refinance under LTFF Scheme will be 11.00% for financing up-to 3 years, 10.10% for over 3 years and up-to 5 years and 9.70% for over 5 years and up-to 10 years. Participating Financial Institutions’ PFIs spread for these tenors will be 1.50%, 2.50% & 3.00% respectively. Hence, end users’ rate for these tenors will be 12.50%, 12.60% & 12.70% respectively, says SBP Circular 6 of July 1, 2011.

Similarly, rates of service charges under Scheme for Financing Power Plants Using Renewable Energy have been re-fixed at 10.10% for financing up-to 5 years and 9.70% for over 5 years and up-to 10 years. Banks/DFIs will be allowed to charge 2.50% and 3.00% spread respectively for these tenors. Hence, end users’ rate for these tenors will be 12.60% & 12.70% respectively, according to Circular 7 of July 1, 2011.

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