Brazmus

Main Menu

  • Consumer Movement
  • Drawdown
  • European Terms
  • Producer Presence
  • Capital

Brazmus

Header Banner

Brazmus

  • Consumer Movement
  • Drawdown
  • European Terms
  • Producer Presence
  • Capital
European Terms
Home›European Terms›Small businesses consider longer credit terms from banks

Small businesses consider longer credit terms from banks

By Wilbur Moore
November 29, 2021
0
0

Capital markets

Small businesses consider longer credit terms from banks

Tuesday, November 30, 2021

BDgeneric_logo
By OTIATO GUGUYU
More from this author

Summary

  • The Cooperative Bank last week announced a seven-year loan facility for small businesses with up to 250 workers.
  • The government also entered the fray by launching the SH 4 billion SME Guarantee Fund backed by a pledge from donors to fund a capital of Sh 10 billion.
  • The African Development Bank and European institutions have played a key role in supporting affordable conditions through low cost financing.

Small businesses are considering longer-term loans at fairer rates from funds provided to banks by development finance institutions to provide capital to finance the post-Covid-19 stimulus package.

Cooperative Bank #ticker: COOP announced last week a seven-year loan facility for small businesses with up to 250 workers, in partnership with the European Investment Bank (EIB) which provided 50 million euros ( 6.3 billion shillings) to help small businesses finance business acquisition, working capital, innovation development of distribution networks and business research.

The EIB also reached a nine-year, 100 million euros (12.7 billion shillings) financing deal last week with pan-African lender Ecobank Group for subsequent loans to sectors most affected by the Covid pandemic. 19 in the region.

“This latest cooperation will help businesses better meet the challenges triggered by the Covid-19 pandemic, open up economic and social opportunities, especially for SMEs and women-owned and-led businesses, across sub-Saharan Africa. in the coming weeks ”, declared EIB Vice-President Ambroise Fayolle.

Equity Bank #ticker: EQTY also announced an SME Loan Program, offering medium-term loans to businesses that have struggled to access credit due to risk.

Equity Group chief executive James Mwangi, who signed a financing worth 62.8 billion shillings, said the capital would unlock the potential to lend to SMEs at 13% for five years.

KCB #ticker: KCB also received $ 150 million (16.4 billion shillings) from IFC last year for loans to MSMEs on flexible terms.

The government also entered the fray by launching the SH 4 billion SME Guarantee Fund backed by a pledge from donors to fund a capital of Sh 10 billion.

As of June, the program had guaranteed 334 credit facilities amounting to 634.5 million shillings.

The African Development Bank and European institutions have played a key role in supporting affordable conditions through low cost financing, guarantee programs and funding for SME training to ensure that disbursed funds are used well.

Besides the EIB, other institutions include leading European development banks, notably the German DEG, the Dutch FMO, the British CDC and the French Proparco as well as the International Financial Cooperation of the World Bank.

[email protected]

Related posts:

  1. Unique: start-up Coliving Habyt acquires international provider of coliving Quarters
  2. Asia and LNG disrupt the pure fuel worth mannequin in Europe
  3. ACRE acquired by European non-public fairness agency Triton
  4. (BUZZ), Gamestop Company (NYSE: GME) – How the Social Sentiment ETF really works backed by Dave Portnoy
Tagscovid pandemicvice president
  • Terms and Conditions
  • Privacy Policy