Karachi: The State Bank of Pakistan (SBP) on Monday allowed the manufacturers of protective gear and equipment to avail its Refinance Facility to Combat Covid-19 (RFCC) — a news source reported. SBP had launched the RFCC on March 17 earlier this year following the outbreak of the coronavirus pandemic.
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According to the details available, under the said facility, the SBP provides a refinance utility to the banks at a 0% rate, while banks are allowed a maximum of 3% margin for providing the facility to companies combating the detrimental consequences of the coronavirus pandemic. Some of the banks, in turn, have been providing the refinance at minimal margins as a part of their Corporate Social Responsibility (CSR).
Under the expanded RFCC, manufacturers of protective gears and equipment — including items such as masks, dresses, testing kits, hospital beds, and ventilators — are also allowed to avail RFCC financing. The SBP has also extended RFCC to include hospitals other than the ones serving coronavirus patients.
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Between March 17 and July 2, a total of PKR 6.4 billion of concessionary credit has been approved for various hospitals and companies under the RFCC.