Summary sheet
- Credit lines - Credit lines
The project is a regional unfunded risk sharing facility ("the Facility") which aims at contributing to bridge the financial services gap for SMEs in ACP countries. Several individual risk sharing agreements will be signed with selected local banks under the framework of the Facility. These operations will provide the banks with a partial credit risk guarantee covering up to 50% of the principal losses incurred under their portfolios of eligible SME loans. The project forms part of the Global SME Finance Facility in which IFC and EIB will be Anchor Investors. KfW and other investors are also expected to participate in the Global Facility. DFID will support the project, among other, by funding capacity building schemes for the participating local banks.
The credit guarantees will enable and encourage local banks to grow their SME loan portfolio and specifically to increase their local currency lending activities to this business segment. By contributing to improved access to finance for SMEs, the project will support job creation and promote more inclusive and balanced economic growth in ACP countries
Within the framework of the Facility, the selected banks will be requested to ensure compliance of their SME lending operations with a harmonised set of policy requirements, including EIB requirements, in particular on environment and procurement
Within the framework of the Facility, the selected banks will be requested to ensure compliance of their SME lending operations with a harmonised set of policy requirements, including EIB requirements, in particular on environment and procurement