SBP launched new Export financing facility – Alfalah Securities Limited

Karachi, January 04, 2013 (PPI-OT): State Bank of Pakistan (SBP) has launched an Export Finance Facility for Locally Manufactured Machinery (EFF‐LMM) effective from January 03, 2013.

According to Alfalah Securities Limited, it is done to promote export of locally manufactured plant and machinery and other engineering goods.

The financing facilities will be available both at pre‐shipment and post‐shipment stages for a maximum period of 5 years against Letter of Credit (LC) and export contract for tenor upto 1 year. The 5 years financing includes 1 year grace period for the export of plant and machinery worth of USD 10 mn or higher while that of below USD 10 mn worth with be available for 3 years (6 months grace period). Other machinery items will be eligible for financing up‐to 1 year. Finance to the exporters will be available at the rates applicable under the Long Term Financing Facility (LTFF) which are currently 10.30% and 10.90% for 3 and 5 years respectively. The repayment of principal amount of loan shall be made in equal half yearly or quarterly instalments after grace period, if any. Mark up shall be paid on quarterly basis. It would have a positive impact on the economic growth, if it leads to increase in exports.

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