KARACHI: Temporary Economic Refinance Facility for plant and machinery would attract weightage of 25 percent for the purpose of calculating exposure limit.

As per revised Regulation R-1 of Prudential Regulations for Corporate/Commercial Banking regarding Temporary Economic Refinance Facility (TERF) & Islamic Temporary Economic Refinance Facility (ITERF), respectively, the SBP has clarified that financing facilities allowed under TERF/ITERF for plant and machinery would attract weightage of 25 percent for the purpose of calculation of Single/Group Obligor Exposure Limit under Regulation R-1 of the Prudential Regulations for Corporate/Commercial Banking.

Copyright Business Recorder, 2020