Banks receive sh139b boost to lend to SMEs
Apr 29, 2011
FIVE commercial banks have received a euro 40m (about sh139.2b) credit line from the European Investment Bank to lend to small and medium enterprises (SMEs).
By Samuel Sanya
FIVE commercial banks have received a euro 40m (about sh139.2b) credit line from the European Investment Bank to lend to small and medium enterprises (SMEs).
“We will work closely with five leading banks to support SMEs across the country,†said Plutarchos Sakellaris, the European Investment Bank vice-president for Africa at the signing of the deal in Kampala yesterday.
The beneficiary banks include Bank of Africa, Centenary Bank, Crane Bank, dfcu Bank and Housing Finance Bank. Sakellaris said the facility would be offered in euros, dollars and shillings to facilitate local and international trade. He said the banks were expected to train entrepreneurs to write bankable business plans before advancing them the credit repayable in three to 10 years.
“We shall provide loans to SMEs from 8% to 18% depending on market forces and the clients risk profile,†said Juma Kisaame, the dfcu Bank managing director.
FIVE commercial banks have received a euro 40m (about sh139.2b) credit line from the European Investment Bank to lend to small and medium enterprises (SMEs).
“We will work closely with five leading banks to support SMEs across the country,†said Plutarchos Sakellaris, the European Investment Bank vice-president for Africa at the signing of the deal in Kampala yesterday.
The beneficiary banks include Bank of Africa, Centenary Bank, Crane Bank, dfcu Bank and Housing Finance Bank. Sakellaris said the facility would be offered in euros, dollars and shillings to facilitate local and international trade. He said the banks were expected to train entrepreneurs to write bankable business plans before advancing them the credit repayable in three to 10 years.
“We shall provide loans to SMEs from 8% to 18% depending on market forces and the clients risk profile,†said Juma Kisaame, the dfcu Bank managing director.