Credit Libanais gets $50 million senior loan from IFC
Credit Libanais has obtained long-term financing from the International Finance Corporation (IFC) that it will use to provide loans to local Small and Medium Enterprises (SMEs), the two parties said in a joint statement.
The financing granted by the IFC, which is a member of the World Bank Group, comprises a senior loan of $50 million with a hedged fixed interest rate.
“IFC’s financing package is expected to expand the SMEs lending by ten percent and the number of SMEs in Lebanon by 25 percent,” the statement said.
SMEs represent 95 percent of the total number of companies in Lebanon and provide almost half of the country’s job opportunities. But SMEs typically encounter difficulties securing funding. The country’s SME financing gap is estimated at nearly $9 billion.
Mouayed Makhlouf, IFC’s Regional Director for the Middle East and North Africa said: “We aim to strengthen Lebanon’s financial sector by fostering investments that promote sustainable economic growth, particularly in priority segments like SMEs.”
According to Joseph Torbey, Chairman of the Credit Libanais group, the bank’s relationship with IFC dates back to 2007. This is the third financing transaction between the two parties.
Reported by Shikrallah Nakhoul
Date Posted: Nov 29, 2018