Luxemburg, 13/07/2007 (Agence Europe) - The European Investment Bank (EIB) has just signed a framework guarantee agreement with BGFIBANK SA to share the risk on loans or guarantees granted by BGFIBANK to private or public commercial enterprises.
BGFIBANK, which has received earlier EIB credit lines in Gabon, is the first bank selected for the proposed operation. However, other banks from countries of the Central African Economic and Monetary Community (CEMAC) may become eligible in the future.
This framework guarantee agreement is complementary to the credit lines put in place by the EIB in many Central African countries to provide long-term investment finance to private sector small and medium-sized enterprises. Today, in the light of the abundant liquidity available in the region, the proposed operation will assist banks to use such liquidity to participate in the financing of major projects foreseen for the coming years, while complying with the prudential ratios of the Central African Banking Commission (COBAC). The operation will thereby help to tap local resources, strengthen the financial institutions participating in the scheme and develop the private sector in the region.
To be eligible for an EIB guarantee, potential projects will have to satisfy certain criteria. Amongst other things, an eligible project should require medium- to long-term financing with a term of a minimum 3 and maximum 10 years, and be economically and financially sound, environmental friendly and socially responsible. (ol)