Federal govt allocates Rs 30 billion to support bank lending to small businesses

BusinessFederal govt allocates Rs 30 billion to support bank lending to small...

ISLAMABAD, Pakistan: The federal government has allocated Rs 30 billion to support bank lending to small businesses. 

The amount has been allocated by the government under a credit risk sharing facility for banks spread over four years to share the burden of losses due to any bad loans in the future.

Under this risk sharing arrangement, the federal government will bear 40 percent first loss on principal portion of disbursed loan portfolio of the banks.

This facility will incentivize banks to extend loans to collateral deficient Small and Medium Enterprises (SMEs) and small corporates with sales turnover of upto Rs 2 billion to avail financing under SBP refinance scheme.

Under the SBP’s Refinance Scheme to Support Employment and Prevent Layoff of Workers due to the impact of COVID-19, businesses that commit to not lay off workers in the next three months can avail credit through banks for the three months of wages and salaries expenses at a concessional mark-up rate.

Mati
Mati
Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

Must read

Recent News

State Bank of Pakistan releases coin to commemorative 555th birth anniversary of Baba Guru Nanak

State Bank of Pakistan releases coin to commemorative 555th birth anniversary of Baba Guru...

0
Karachi, Pakistan: The State Bank of Pakistan has released coin worth Rs 55 to commemorate the 555th birth anniversary of Baba Guru Nanak.On the...
Punjab Government created a trench at Haro River Bridge so PTI procession from Peshawar could not enter Islamabad

PTI Protest Call: Despite road blockades, PTI workers move on towards Islamabad

0
Monitoring Desk: Despite road blockades, worker arrests, and a police crackdown, followers of Tehreek-e-Insaf (PTI) are moving fast towards Islamabad for a protest on...
37 Brigadiers of Pakistan Army promoted as Major Generals

CTD Punjab claimed to kill three TTP terrorists near Rawalpindi

0
Rawalpindi, Pakistan: The Counter Terrorism Department (CTD) of Punjab killed three TTP terrorists (officially known as Khawaji) at Chakri, 30 km away from the...
Ukraine to receive 500,000 artillery shells by yearend from Czech Republic Monitoring Desk: In dire need to counter Russian aggression, Ukraine will receive 500,000 shells of various calibers by the end of this year from Czech Republic, reports Ukrinform. Referring to announcement of Czech Foreign Minister Jan Lipavský, Ukrinform reports that Czech Republic will continue to provide support to Ukraine to repel and stop Russian aggression. "As you know, my country has launched an initiative on ammunition. By the end of the year, 500,000 large-caliber shells will be delivered. We will not stop there. We will continue to provide the Armed Forces of Ukraine with the necessary support," the Czech Foreign Minister emphasized.

Ukraine to receive 500,000 artillery shells by yearend from the Czech Republic

0
Monitoring Desk: In dire need to counter Russian aggression, Ukraine will receive 500,000 shells of various calibers by the end of this year from...

PTI Protest Updates: Bushra Bibi stays away from protest

0
Islamabad, Pakistan: Owing to the fear of arrest, former first lady Bushra Bibi has decided to avoid the PTI protest on November 24. She...
Advertisement