Kafalat loans down

Guarantees fall in number and value during first quarter of 2012

The number of loans extended to small and medium sized enterprises (SMEs) under the guarantee of Kafalat fell by 20 percent during the first quarter of this year compared to the same period in 2011. The government-subsidized loan guarantee program issued 240 guarantees during the first three months of this year.

The total value of loans issued through Kafalat during the covered period stood at $33 million, with an average value per guarantee of around $137,000. The total value of Kafalat-guaranteed loans was around $42 million during the first quarter of 2011.

The industry and agriculture sectors acquired the largest shares of the Kafalat loan guarantees with 36.6 percent and 36 percent respectively. The tourism sector followed with 20 percent of the guarantees. 

Reported by Hanadi Chami