Mark-up rate facility schemes: banks asked to approach SBP BSC for pending claims

The State Bank of Pakistan has advised commercial banks and DFIs to approach the respective offices of the SBP Banking Services Corporation (BSC) for processing of pending claims with respect to Export Finance Mark-up Rate Facility and Mark-up Rate Support for Textile Sector against the long-term loans.
According to a Circular (SMEFD Circular Letter No 14) issued on Wednesday, the Ministry of Textile Industry has released necessary budgetary allocation for fiscal year 2010-11 to reimburse up to 32 percent out of 40 percent unpaid claims under the Export Finance Mark-up Rate Facility and pending claims under both the Schemes for the period from 01-09-2009 to 28-02-2010.
The Circular said the remaining 8 percent of the Export Finance Mark-up Rate Facility, for the period 01-09-2009 to 28-02-2010, shall be released on receipt of necessary budgetary allocation/instructions from Ministry of Textile Industry/Ministry of Finance.
It may be recalled that during FY 2009-10 offices of SBP-BSC (Bank) reimbursed 100 percent Mark-up Rate Support against long-term loans; and 60 percent Export Finance Mark-up Rate Facility, for six months period from 01-09-2009 to 28-02-2010. However, a few claims were pending with the offices of SBP-BSC due to non-fulfilment of certain terms and conditions of above Schemes and/or other omissions/errors made by the banks/DFIs/borrowers.
Following the release of budgetary allocation, Banks /DFIs have been advised to approach the respective offices of SBP-BSC within 20 working days with the requisite information and/or to rectify omissions/errors to enable them to process the pending claims for above six months period. Moreover, offices of SBP-BSC will also release Export Finance Mark-up Rate Facility to the extent of 32 percent of total claims against the cases which have been found in order and where 60 percent reimbursement has already been made. Banks/DFIs shall immediately pass on this additional reimbursement to the concerned exporters/borrowers, the circular added.