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dfcu gets sh33b boost

By Vision Reporter

Added 6th June 2010 03:00 AM

PROPARCO has offered a $15m (about sh33b) financial support under a seven-year credit line to dfcu Bank to help in stimulating the growth of businesses in Uganda.

PROPARCO has offered a $15m (about sh33b) financial support under a seven-year credit line to dfcu Bank to help in stimulating the growth of businesses in Uganda.

By David Ssempijja

PROPARCO has offered a $15m (about sh33b) financial support under a seven-year credit line to dfcu Bank to help in stimulating the growth of businesses in Uganda.

Proparco is the private sector arm of the French Development Agency Group, the official French bilateral development financial institution.

This credit line, brings to $27m (about sh59.6b), the total credit facility extended to dfcu by Proparco, following a $5m (about sh11b) and a $7m (about sh15.4b) facilities disbursed in 2005 and 2007.

“We have continued supporting dfcu because they have consistently exhibited a lot of compliance with the best credit management practices,” Ghislain de Valon, the head of Proparco Eastern Africa, said at the signing of the deal in Kampala over the weekend.

Similarly, previous credit facilities were released on a seven-year tenor.
They were aimed at boosting the long-term financing requirements of small-and-medium enterprises in the housing, transport, tourism and manufacturing sectors.

“We still need to partner with economically viable, socially equitable, environmentally sustainable and financially profitable entities so as to drive growth, especially in developing countries,” de Valon added.

Juma Kisaame, the dfcu bank managing director, said this new and bigger credit line will go a long way in addressing the growing need in the Ugandan market for longer-term foreign exchange denominated loans.

“Housing projects for instance need quite longer periods before they become commercially active and the need to import some of the supplies used in the sector, certainly makes disbursement of dollar-denominated loans business friendly,

“This facility will strengthen our ability to respond to these unique needs of the sector,” Kisaame pointed out to the press.

dfcu gets sh33b boost

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