Hospitals can acquire up to Rs500m worth of subsidised loans: SBP

KARACHI: Against the backdrop of rising cases of COVID-19 in the country and to strengthen the health sector in the fight against the deadly virus, the State Bank of Pakistan (SBP) on Friday enhanced a maximum financing limit per hospital or medical centre to Rs500 million.

According to a statement, a single hospital or medical centre can now acquire up to Rs500 million worth of loans under its Refinance Facility for Combating COVID -19 (RFCC). Previously, the financing limit was Rs200 million.

“The RFCC is an emergency funding facility to support hospitals/medical centres to develop their capacities for treatment of infected patients of COVID-19,” the central bank said, adding the financing under this facility is being made available by the State Bank at 0 per cent to banks that can charge a maximum rate of 3 per cent per annum.

The State Bank has been continuously improving features of this facility to ensure timely financial support to hospitals and medical centres engaged in combating COVID-19.

So far, the statement said, financing of Rs2.2 billion for 11 hospitals/medical centres has been approved whereas financing requests of Rs 3.6 billion for 23 hospitals/medical centres are being processed by the banks.

With today’s enhancement of financing limit, the SBP said, it is expected that large scale facilities will be created for treating COVID-19 patients by using subsidised funding being extended under this Facility.