Luxembourg, 18/10/2004 (Agence Europe) - The European Investment Bank has stepped up its cooperation with Gabon's financial sector via two new lines of credit: i) a loan of EUR 6.5 million to BGFIBANK Gabon and ii) a loan of EUR 3.5 million to Banque gabonaise de développement (BGD). Both loans meet the specific needs of the two banks selected by providing them with the long-term financial resources currently lacking on the banking market in Central Africa.
The EIB notes in a press release that it 'supports Gabon's financial sector in line with its mandate under the Cotonou Agreement between the EU and the ACP States.' The purpose of these EIB loans is to inject into Gabon's economy part of the long-term funds required to finance private sector investment, while helping the two banks concerned to shore up their respective balance sheets. This operation follows up on a similar loan previously arranged in Gabon with BGFIBANK, BGD and BICIG, which has been deployed over the past three years. BGFIBANK is the second largest bank in Gabon, ¾-owned by private shareholders with the rest of its capital held by BGD and the Gabon government. Banque gabonaise de développement is a public corporation majority owned by the Republic of Gabon. In addition, the EIB is planning to mount a further operation aimed at strengthening the quasi-equity of two subsidiaries of BGFIBANK (BGFIBAIL and FINATRA) via a EUR 6m subordinated loan already approved by the Bank's decision-making bodies.