Algeria
Egypt
Israel
Jordan
Lebanon
Libya
Morocco
Palestine *
Syria *
TunisiaThe MENA Guarantee Facility
Countries covered:
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Algeria
-
Egypt
-
Jordan
-
Lebanon
-
Morocco
-
Palestine *
-
Tunisia
Brief Description
The purpose of the project is to encourage a select number of financial institutions to increase their lending activity to SMEs by reducing their exposure to risk. It therefore consists in the setup of a pool of instruments composed of Risk-Sharing Facilities (RSFs) and complementary instruments to increase financial institutions’ SME portfolios.
South Neighbourhood countries covered: Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, Tunisia.
Objectives
– Increase in local banks’ lending to SMEs, improving access to finance for SMEs on a sustainable basis;
– Enhance and strengthen the capacity of local financial institutions for risk taking and financing to SMEs;
– Bridge the financial services gap for SMEs and make a meaningful contribution towards greater financial inclusion;
– Finance business operations, including but not limited to working capital, equipment and machinery financing.
Actions in brief
– Support to Local Guarantee Funds (LGFs);
– Offer loans in local or foreign currency as well as Technical Assistance (TA);
– Provide credit risk mitigation through risk-sharing facilities (RSFs) to local Financial Institutions (FIs);
– Finance business operations, including but not limited to working capital, equipment and machinery financing.
Implementing partner: Agence Française de Développement (AFD)
