French Polynesia: EIB launches microcredit programme with Banque SOCREDO

The European Investment Bank (EIB), the bank of the European Union, and Banque SOCREDO today signed an agreement under which the EIB will make available to SOCREDO a financing facility for small and micro entrepreneurs in French Polynesia.

The operation consists of the granting of a five-year EUR 8.4 million loan (nearly F CFP 1 billion) from the Investment Facility set up under the Cotonou Agreement on development aid and cooperation.

Banque SOCREDO will be able to use these funds to grant direct loans on certain terms to micro entrepreneurs in French Polynesia to carry out a variety of investment projects. Eligible products will be mounted for productive purposes and 90% will be in sectors such as agriculture, commerce, livestock breeding, fisheries, small-scale industry, construction, transport, handicrafts and pearl cultivation. These microloans will have a maximum maturity of seven years and a maximum amount of EUR 50 000 (F CFP 5.6 million).

This microcredit programme will likewise benefit ADIE (Association pour le Droit à l’Initiative Economique), which thanks to EIB refinancing will also be able to support French Polynesian micro entrepreneurs.

“With this facility, which could also lead to other EIB investments in the future, Banque SOCREDO will be able to increase its market for micro entrepreneurs, specifically targeting the younger generation who are the future of Polynesia” said Ambroise Fayolle, European Investment Bank Vice-President.

The EIB’s first operation in support of Banque SOCREDO’s activities goes back to 1980. Since then, this financial partnership has contributed EUR 120 million (F CFP 14.3 billion) to the French Polynesian economy.

“In signing this agreement Banque SOCREDO wishes to encourage small entrepreneurs. The funds made available by the EIB on certain terms can help them to start up or grow their businesses” said James Estall, Managing Director of Banque SOCREDO.

Through this financing facility, over 200 projects meeting the EIB’s eligibility criteria are likely to be financed by Banque SOCREDO. Likewise thanks to ADIE, the number of final beneficiaries of this programme will be markedly increased.