SBP re­vises mark-up rates for flood-hit ar­eas

The Pak Banker - - FRONT PAGE -

KARACHI: State Bank of Pak­istan (SBP) has re­vised down the mark-up rates for var­i­ous re­fi­nance schemes at 6 per­cent in or­der to en­cour­age credit to pri­vate sec­tor, ex­ports and lo­cal pro­duc­tion through­out the coun­try. In this re­gard, the cen­tral bank no­ti­fied that it re­duced the mark-up rates to 6 per­cent for banks bor­row­ers liv­ing in the flood af­fected ar­eas un­der re­fi­nance scheme for re­vival of SMEs & agri­cul­tural ac­tiv­i­ties in flood af­fected ar­eas of 2014.

The no­ti­fi­ca­tion stated that re­fi­nance un­der the scheme shall be pro­vided to the banks at 3.00% p.a whereas the banks shall be per­mit­ted to charge a max­i­mum spread of 3.0% p.a. from the bor­row­ers. There­fore, fi­nanc­ing to SMEs/farm­ers will be avail­able at 6.00% p.a. to be ef­fec­tive from July 1, 2015. The cen­tral bank no­ti­fied that the scheme for fi­nanc­ing power plants us­ing re­new­able energy re-fix­a­tion of rates of ser­vice charges at 6 per­cent whereas same rate has been de­cided for re­fi­nance fa­cil­ity for mod­ern­iza­tion of SMEs re-fix­a­tion of rates of ser­vice charges. The cen­tral bank has fixed the mark-up users at 6 per­cent whereas it al­lows banks to main­tain its spread from 1 to 3 per­cent on var­i­ous schemes in­creas­ing on the pe­riod of bor­row­ing from 1 to 5 years to 5 to 10 years.

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