New Delhi, Jul 10 (KNN)  In order to enhance shipments from the country, the Commerce Ministry has urged the Reserve Bank of India (RBI) to liberalise packing credit scheme for exporters and has also requested the apex bank to ensure that small and medium enterprises (SMEs) have access to foreign currency loans from banks for exports. 

In a letter to RBI Governor D Subbarao, Commerce Secretary S R Rao said, "We would ... request that RBI's special export credit refinance to support PCFC (packing credit in foreign currency) (and it) may be enhanced from 50 per cent to 100 per cent," according to a media report.

Rao also suggested that the scheme should be liberalised to the maximum extent possible through greater refinance margins.
 
"It should enhance the overall quantum of refinance available and bring in long term stability to this policy, so as to encourage better export finance planning by both the exporters and concerned banks," the letter added.
 
The RBI Governor also said that the RBI's special refinance window for PCFC by way of US Dollar-Rupee swap facility has been extremely well received by the exporters and commercial banks.

However, the SME sector also needed encouragement, he said, urging the apex bank to ensure the sector had access to foreign currency loans for exports from Indian banks at a ceiling of LIBOR plus 200 bps.   (SD/KNN)