Mark-up rate subsidy: SBP asks banks, DFIs to make 40 percent payment

The State Bank of Pakistan (SBP) has advised banks/DFIs to make 40 percent payment of 2nd instalment 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 has also advised that after making payments of mark-up rate subsidy to the extent of 40 percent 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 the Ministry of Textile Industry's Registration Certificate.
The Ministry of Textile Industry has released necessary budget to make payment of 2nd instalment of mark-up subsidy for the period from 01-03-2010 to 31-08-2010 under above mentioned schemes, says IH&SMEFD Circular Letter No 09 of May 20, 2011. However, budgetary allocation is not sufficient enough to clear 100 percent 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, the Circular Letter added.