SBP's significant role in textile industry's development
18 Jul '07
2 min read
Similarly, financing facilities under LTF-EOP for up to 7-1/2 years are available to exporters at 7.0%. Total gross disbursement from refinancing facility allowed to banks during July 2006 to April 21, 2007 under EFS and LTF-EOP is estimated to be Rs 328 billion of which EFS flows were Rs 284 billion.
It may be pointed out that while providing these incentives, the State Bank has always underscored that the country's financial sector offers fairly competitive financing to textile industry and real interest rates in the country are lower than its regional and competitive partners. This has been further confirmed by an independent report of a consultant hired by the Government.
It is significant to note that FY07 reflects record high-level refinancing support ever provided by the State Bank. This refinancing has had few consequences: First, refinancing being a creation of new money has an impact on growth of high-powered money.
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