Karachi: The State Bank of Pakistan (SBP) has allowed a 180-day limit extension for loan settlements under the FE-25 scheme for both exporters and importers, the central bank announced through a statement issued on Thursday (according to a news source).
As per the statement, the SBP has now allowed banks to extend the limit of settlement of the FE-25 loans for exporters; particular those who are facing issues in the realisation of proceeds from their exports because of delays in business due to the ongoing coronavirus pandemic situation.
The statement further states that banks have also been sanctioned to settle the FE-25 loans through substitute contracts in case the original contracts had been cancelled due to the pandemic. This facility can only be availed during the 180-day extension period.
The central bank has also extended similar facilities for FE-25 import loans. This provision is primarily intended for traders (both importers and exporters) with foreign currency loans set to mature by September 30 this year.
