ISLAMABAD – State Bank of Pakistan announced refinance scheme forbusinesses over coronavirus outbreak.
The State Bank of Pakistan has announced a temporary refinance scheme forbusinesses to support the employment of workers during the coronavirusoutbreak.
It gives businesses incentive to not layoff its workers.
The scheme will be available to all businesses in Pakistan through banksand cover all types of employees, including permanent, contractual, dailywages and outsourced workers.
It will provide financing for wages and salaries expense for three monthsfrom April to June 2020 for businesses which do not layoff their employeesfor these three months.
The mark-up on the loans under this scheme will be up to 5%, reads a pressstatement issued by the SBP Friday night.
Borrowers that are on the active taxpayers list will be able to get loansat a further reduced mark-up rate of 4%. The scheme has been designed togive preference to smaller businesses.
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“Businesses with a three month wage and salary expense of up to Rs200million will be able to avail the full amount of their expense in financingwhile those with a three month wage and salary expense of greater thanRs500 million will be able to avail up to 50% of their expense,” thestatement reads.
Banks will not charge any loan processing fee, credit limit fee orprepayment penalties for loans under this scheme.
A grace period of six months will be allowed to the borrowers while therepayment of the principal amount will be made in two years.
Banks will provide weekly reporting to SBP.
