New Leasing: Facilities for Export Companies
9 years, 1 month ago - May 27, 2013
Export-oriented enterprises in the textile sector will now benefit from new leasing facilities in US Dollar (USD) and Euro. Finance Minister Xavier-Luc Duval on Wednesday launched the scheme under the Leasing Equipment Modernisation Scheme (LEMS) in Forex to bring a variation to the current LEMS in local currency.
A sum of around Rs 90 million has been earmarked for the project with a fixed rate line of credit to the lessees of 2.9% in USD and 2.75% in Euro. The objective is to broaden the scope of LEMS that has been operational since three years with a capital of Rs 1.4 billion at the rate of 7.25% in local currency.
This is expected to further boost the much required investment in equipment and machinery in the manufacturing sector and will also protect enterprises from currency risks since they are already dealing in Forex. The initiative will also address the low capital productivity and increase the efficiency in that sector at a time when the global economy continues to remain fragile and our main export, market Europe, representing over 60% of our exports, is expected to continue in recession.
