Posted by From Kunle Aderinokun in Abuja on
The Federal Government has said it was securing $90 million credit from the Netherlands Development Finance Company (FMO) for micro- financing, in addition to the $10 million and $15 million credit guarantee facility (CGF) granted United Bank for Africa Plc and Access Bank Plc respectively yesterday by the Dutch development finance company.
The Federal Government has said it was securing $90 million credit from the Netherlands Development Finance Company (FMO) for micro- financing, in addition to the $10 million and $15 million credit guarantee facility (CGF) granted United Bank for Africa Plc and Access Bank Plc respectively yesterday by the Dutch development finance company.
Making the disclosure yesterday in Abuja at the signing of a $10 million and $15 million between UBA and Access respectively and FMO, Minister of Foreign Affairs, Mr. Olu Adeniji said FMO was extending $90 million to the Federal Government through some Nigerian banks for the purpose of financing trade and micro-entrepreneurs. He however did not mention the banks that are involved.
The loans that were being provided out of funds held by the Netherlands' Minister for Development Cooperation, Mrs. A. Van Ardenne, would be made available through Australian and New Zealand Bank (ANZ). The ceremony was witnessed by the Dutch Prime Minister, Mr. Jan Peter Balkenende and Mrs. Ardenne.
Chief Executive Officer, FMO, Mr. Arthur Arnold said with the two agreements signed yesterday, the company's investment in private organizations in the country has more than doubled.
He said the $10 million facility extended to UBA was under a joint venture agreement out of which $6 million would be used for micro-financing and the rest for trade financing.
He added that, on the other hand, the $15 million for Access Bank, which is a convertible loan, would be applied to small businesses.
Arnold said, "in agreeing to sign the agreement, Access Bank said they need to go into retail strategy and move away from the upscale clients they have before now."
In his remarks, Managing Director, UBA Group, Mr. Tony Elumelu said the facility to the bank was aimed at "enhancing UBA's trade financing capacity and signals the beginning of a long-term strategic partnership between UBA, FMO and ANZ."
Also speaking, Managing Director, Access Bank, Mr. Aigboje Aig-Imokhuede said "he Access Bank/FMO relationship began in 2002 and has over the last three years grown from strength to strength culminating in the availment of multiple credit facilities to Access Bank Plc."
He said, with the new loan agreement, "the FMO has increased its facilities to Access Bank by an additional $25 million, bringing its total risk exposure to the bank to $35 million, noting that, "the $25 million is structured as a $10 million Structured Trade Facility (for trade) and a $15 million Convertible Loan."