Home / Knowledge / News / Textiles / Mark up rate support for textile sector against long term loans
Mark up rate support for textile sector against long term loans
23
Mar '10
Effective September 1, 2009 the Government of Pakistan has announced a Mark up Rate Support for Textile Sector on their outstanding running balances of principal amount of floating rate loans availed by the industry from commercial banks/DFIs for financing import / purchase of textile machinery vide Notification No. 3(3)TID/09-P-I dated 1st September 2009 of Ministry of Textile Industry (MINTEX).

2. Pursuant to the release of budgetary allocation by the Ministry of Finance for payment of above Support for six months ending on 28th February, 2010, following procedure has been devised in consultation with Ministry of Textile Industry, for payment of Mark up Rate Support for Textile Sector to the eligible borrowers of Textile Sector:-

(i) Maximum Support will be admissible to the extent of 5% p.a. or the difference in mark-up rate between floating rate loan and LTFF rate, whichever is lower.

(ii) The amount of Support shall be paid by the commercial banks/DFIs to the eligible borrowers at their respective branches, provided the borrowers have on-line Registration Certificate issued by Ministry of Textile Industry during the validity of the same.

(iii) The Support shall be admissible on the principal amount of loans outstanding on reducing balance on daily product basis.

(iv) The loans disbursed by the banks/DFIs up-to August 31, 2009 shall qualify for the facility.

(v) The Support shall be admissible against long term loans extended for import / local purchase of textile machinery only against import/inland letter of credit (LC).

(vi) The outstanding loans in respect of locally manufactured and imported machinery for which borrowers have availed financing facilities under SBP's Long Term Financing Facility (LTFF) will not be eligible for this facility.

(vii) No Support shall be admissible on the amount of loan disbursed for meeting import incidentals. The Support shall be admissible only on the outstanding principal amount of loans availed on the C&F value of the imported machinery and / or ex-factory /show room price of locally manufactured machinery.

(viii) This facility will be administered by the commercial banks/DFIs.

(ix) Amount of Support shall be paid by commercial banks/DFIs on six monthly basis in March and September each year subject to release of necessary budgetary allocation by the Federal Government for relevant fiscal year.

(x) Accordingly, Support for six months ending on 28th February 2010 (from 01-09-2009 to 28-02-2010) shall be from the date of issuance of this circular up-to April 23, 2010. However, final dates for payment of Support in the next period shall be announced separately on receipt of budgetary allocations from Government of Pakistan for the respective periods.

(xi) For the calculation of Support payable in the month of March-April 2010, the amount outstanding as on 31st August 2009 shall be used as base figure and amount of Support shall be calculated on reducing balance basis for all scheduled repayments by the borrowers during six months period.


Must ReadView All

Courtesy: Sympatex Technologies

Textiles | On 23rd Feb 2018

Sympatex, Ricosta jointly move towards sustainability

Sympatex Technologies is moving towards sustainability with its...

Courtesy: Business wire

Information Technology | On 23rd Feb 2018

CLO Virtual Fashion launches CLO 4.0 & new website

CLO Virtual Fashion, a leading developer of cutting-edge 3D garment...

HKL Magu welcomes Amitabh Kant, CEO, NITI Aayog; Courtesy: AEPC

Apparel/Garments | On 23rd Feb 2018

AEPC completes 40 years of operation

The Apparel Export Promotion Council (AEPC) has successfully...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Top executives
Textile industry

The foremost issue is bridging the skill gap

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search