Spinning Sector Overview

25 SPINNING | COVID-19 | RELIEF MEASURES PACRA • • In order to relieve liquidity pressure on the sector, the SBP allowed to defer principal repayments for one year to the corporate sector. Further, the SBP also allowed to restructure loans up to 30th June 2020. The SBP, over the course of 4 months, reduced benchmark rate by 625bps to 7%. This is expected to improve the bottom-line of the sector, since majority of the borrowings are utilized at commercial rates. In addition, the Securities & Exchange Commission of Pakistan (SECP) provided several regulatory reliefs to the companies on a proactive basis during lockdown. Source: SBP, SECP

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