Thread by @StateBank_Pak

1/9 #SBP introduces further incentives for businesses under #refinance scheme for payment of wages and salaries to the workers and employees to prevent layoffs. For details:
English: sbp.org.pk/press/2020/Pr-…
Urdu: sbp.org.pk/press/2020/Pr-…

2/9 To address the issue of providing security/collateral for small vendors/distributors, financing has been allowed against corporate guarantees of companies in value/ supply chain relationship with the borrowers.

3/9 Moreover, banks have also been encouraged to provide loans without any collateral i.e. taking clean exposure of up to Rs 5 million.

4/9 SBP incentivizes business which are active tax payers by reducing the mark up rate to 3% that was set as 4% earlier. Now the SBP will provide refinance to banks at 0%.

5/9 This also increases the gap between the rates charged to active tax payers and the non-tax payers businesses, as the latter can be charged an end user markup rate of up to 5%.

6/9 To facilitate employees for receiving wages under the scheme, banks have been allowed to open accounts on info & documents provided by the employers. Banks will ensure #NADRA Verisys before activation of accounts which will solely be used for salary disbursement & withdrawal.

7/9 Businesses have also been given flexibility to avail loan under #SBPs refinance scheme for wages from any bank and they will not be limited to avail loans from the bank that manages their payroll.

8/9 #SMEs can apply for the financing on a simplified loan application form prescribed by #SBP for this scheme.

9/9 Banks’ exposure under the scheme has been exempted from per-party or the per-group exposure limits. It will enable them to lend to borrowers that have exhausted their exposure limits.