SBP's directive to banks

KARACHI: The State Bank of Pakistan (SBP) has advised the banks/ DFIs to make 40 per cent payment of second installment of mark-up subsidy for the period from March 1, 2010 to August 31, 2010 under the schemes of Export Finance Mark-Up Rate Facility and Mark up Rate Support for Textile Sector against Long Term Loans.

The SBP, according to an announcement here Friday, also advised that after making payments of Mark-up Rate Subsidy to the extent of 40% of Total Subsidy, the disbursing branches of banks/ DFIs may seek its reimbursement from the concerned offices of the SBP-BSC on submission of duly completed claims as per prescribed claim forms.

Each claim should invariably be accompanied with a duly attested copy of Ministry of Textile Industry's Registration Certificate.

It may be pointed out that the Ministry of Textile Industry has released necessary budget to make payment of second installment of mark-up subsidy for the period from 01-03-2010 to 31-08-2010 under these schemes.

However, budgetary allocation is not sufficient to clear 100% claims under both the schemes for six months period. Therefore, it has been decided in consultation with the Ministry of Textile Industry that claims of banks / DFIs may be cleared to the extent of 40% under these schemes, it added.