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Banks asked to approach SBP for unpaid claims

Banks asked to approach SBP for unpaid claimsKARACHI: The State Bank has advised commercial banks and Development Financial Institutions (DFIs) to approach respective offices of the SBP Banking Services Corporation 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-terms loans.

According to a circular issued by the SBP on Wednesday, the Ministry of Textile Industry has released necessary budgetary allocation for 2010-11 fiscal year to reimburse up-to 32 per cent out of 40 per cent un-paid 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 eight per cent of the Export Finance Mark up Rate Facility, for the period 01-09-2009 to 28-02-2010, will be released on receipt of necessary budgetary allocation and instructions from Ministry of Textile Industry and Ministry of Finance.

During FY 2009-10, offices of SBP-BSC (Bank) have reimbursed 100 per cent Mark up Rate Support against Long Term Loans; and 60 per cent 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-fulfillment of certain terms and conditions of the Schemes or other omissions and errors made by the banks, DFIs and borrowers.

Following the release of budgetary allocation, Banks and DFIs have been advised to approach respective offices of SBP-BSC within 20 working days with the requisite information and to rectify omissions or 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 per cent of total claims against the cases which have been found in order and where 60 per cent reimbursement has already been made.

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