European Investment Bank (EIB) has granted Euro 30 million (over Rwf 30 billion) credit to Bank of Kigali expected to support Small and Medium Enterprises (SMEs) and provide long term loans to private sector.
The deal was signed yesterday at Kigali Convention Centre on the sidelines of the
Africa CEO Forum bringing together business leaders and heads of states.
The CEO of BK, Dr Diane Karusisi explained that the credit comes in handy and will be utilized to support private sector in Rwanda especially SMEs involved in energy,
manufacturing and trade, agriculture, transport and tourism sectors.
“We believe the credit will reach beneficiaries soon and enable SMEs to play a key role in transformation of national economy,” she said.
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Dr. Karusisi said the credit will enable the bank to maintain affordable interest rate.
“On the interest rate, the cost will be determined by the levels of risk of the various
projects to be financed. The interest rate has been going down overtime. We believe the credit will enable us to keep reduced interest rates for private sector,” she explained.
Ambroise Fayolle, the Vice President of the European Investment Bank expressed
optimism in good use of credit to expand SMEs businesses.
“We finance projects matching EU program. Intervening in the development of SMEs in
Africa is one of EU foundational goals. We are glad for this credit granted to Bank of
Kigali and hope it will be used to increase financing in the private sector in Rwanda,” he said.
Three years ago, BK received Euro 28 million credit which Dr Karusisi said
were utilized conveniently.
She explained that BK will ensure that beneficiaries refund loans appropriately for the
bank to pay the seven-year credit.