Posted on November 26, 2009 - by boris
Pakistan: SBP allows microfinance banks to raise foreign currency loans from international donor agencies…
Liquidity-starved microfinance banks and institutions can now raise foreign currency-denominated loans from international donor agencies, the State Bank of Pakistan (SBP) said on Wednesday.
The purpose of the loan, which can also come from commercial financial institutions, should only be to finance loan portfolio of microfinance banks and borrowing can be raised in US dollar, euro, pound sterling and Japanese yen.
“This decision will help microfinance providers access different sources of debt that may offer longer tenor, and in turn reduce their funding risk,” the SBP said in a press release. Microfinance banks would have to borrow these foreign currency loans for a minimum period of two years and loan pricing will be based on a reference rate such as London Inter-bank Offered Rate (LIBOR), it added.
Source: http://www.thenews.com.pk/daily_detail.asp?id=210416
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