Brussels, 25/08/2008 (Agence Europe) - The European Investment Bank (EIB) has undertaken to support micro, small and medium-sized enterprises (MSMEs) in the Caribbean country of the Dominican Republic. In a press release dated Monday 25 August, it announces its intention to provide credit lines for three local banks (Banco ADEMI, Banco ADOPEM and FONDESA), which will total €20 million in the form of lines of credit and a maximum of €2 million in equity participations. The beneficiary banks will use the funding to finance their portfolios of loans to the MSME sector.
The EIB has been involved in microfinance in the Dominican Republic for the past 12 years. Promotion of small businesses is key to the Dominican Republic's developing economy. Ninety percent of the country's workforce is employed by companies with fewer than 50 employees, and 60% in enterprises with a staff of fewer than 10 people. In 2007, the three main recipients of funds from the new EIB facility supported a total of 111,000 jobs across a wide range of sectors. (L.C./transl.jl)