SBP revises service charges of LTFF, renewable energy

KARACHI: State Bank of Pakistan (SBP) has revised the rates of service charges for banks/development finance institutions (DFIs) and rates for end users under the Long Term Financing Facility (LTFF) Scheme and the Scheme for Financing Power Plants Using Renewable Energy with effect from July 1, 2011.

The rates of refinance under LTFF Scheme will be 11.00 percent for financing up-to 3 years, 10.10 percent for over 3 years and up-to 5 years and 9.70 percent for over 5 years and up-to 10 years.

According to IH&SMEFD Circular No 06 of July 1, 2011, Participating Financial Institutions' (PFIs) spread for these tenors will be 1.50 percent,2.50 percent and 3.00 percent respectively. Hence, the end users' rate for these tenors will be 12.50 percent, 12.60 percent and 12.70 percent respectively.

Similarly, the rates of service charges under the Scheme for Financing Power Plants Using Renewable Energy have been re-fixed at 10.10 percent for financing up-to 5 years and 9.70 percent for over 5 years and up-to 10 years. Banks/DFIs will be allowed to charge 2.50 percent and 3.00 percent spread respectively for these tenors.

Hence, end users' rate for these tenors will be 12.60 percent and 12.70 percent respectively.

Copyright APP (Associated Press of Pakistan), 2011