BDF extends guaranteed funds for SMEs
The Business Development Fund (BDF) is to provide financial support to Small and Medium-sized enterprises (SMEs) in Rwanda.The Business Development Fund (BDF) is to provide financial support to Small and Medium-sized Enterprises (SMEs) in Rwanda.
Chief Executive Officer of the organisation Innocent Bulindi explained that the group wishes to extend guaranteed funds, the New Times reports.
It is hoped this will lead banks, microfinance investors and Savings and Credit Co-operatives to lend more money to less-sizeable companies as it will provide them with back-up funds.
"This is a sector highlighted as high risk, so in case these SMEs don't fullfil the required obligations, we offer collateral," Ms Bulindi stated.
The Rwandan Government established the BDF in a bid to boost financial services and encourage banks to provide credit for agricultural projects.
She explained that the BDF currently provides a guarantee fund of up to 50 percent for SMEs, as well as an agricultural guarantee and will also extend its credit lines.
This comes just after the Rwanda Development Bank signed a new agreement that will see the European Investment Bank offer an €8 million loan to provide medium and long-term finance for SMEs, supporting growth and the creation of jobs.