SBP extends time for settlement of foreign currency loans

KARACHI: In an effort to support industries amid the Covid-19 pandemic, the State Bank of Pakistan has extended the time for settlement of foreign currency loans to 180 days, the central bank stated in a short statement released on Thursday. 

Exporters and importers can now settle their export and import loans under the FE-25 Scheme with an extension of up to 180 days. 

Banks can now allow extension up to 180 days to exporters in settlement of their FE-25 loans in case they are facing delay in realization of export proceeds due to Covid-19. 

In addition, banks can also allow settlement of FE-25 loans to exporters through substitute contract during the extended period of 180 days, where the original export contract has been cancelled due to Covid-19. 

The SBP has also allowed banks to extend the maturity of FE-25 import loans by 180 days. This facilitation has been provided to exporters and importers for their foreign currency loans maturing up to September 30, 2020. 

“The State Bank reiterates its unflinching resolve to continue working with all stakeholders to provide all needed facilitation in these uncertain times in the larger interest of the people of Pakistan,” the statement read. 

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