Ethanol producers to get low interest loans for plant import

[LahoreEstate]

KARACHI (January 24 2009): The State Bank of Pakistan on Friday announced low-interest loan facility for plant, machinery and equipment to be used for production of ethanol. The loans would be provided under 'Long-Term Financing Facility' (LTFF), and only export-oriented units would be eligible under this scheme.

Under the facility, export-oriented projects for producing ethanol would be able to get loan on the low interest rate of 8-10 percent, for a period of three to10 years. SME finance department of SBP has issued Circular SMEFD 2 addressed to heads of banks and DFIs.

Referring to the LTFF Scheme MFD Circular No 07, the SBP has advised that financing for plant, machinery and equipment, to be used by export-oriented projects for producing ethanol would be eligible under the subject facility, while all other instructions issued on the subject remaining unchanged.

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