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Sri Lanka : MOU inked between NDB-IFC

June 25, 2014

The International Finance Corporation and NDB bank on 23 June 2014, expanded the bank s loan-syndication to US $200 million with plans of lending to small and medium scale businesses in the nation for affordable interest rates for periods up to eight years.

A memorandum of understanding related to this deal was inked between the IFC and the NDB at a ceremony at the Kingsbury Hotel.

Rajendra Theagarajah,Director/ CEO NDB bank said, "This will increase access to finance across the country which is critical for the growth of small businesses and thereby create jobs and boost overall economic growth. We will figure out the interest rate of loans based on the risk profile, and evaluated forecast of a business operation. This financing comprises a syndicated facility with six international banks which are leading development finance institutions from Germany, Netherlands, Switzerland, Austria etc. They are new international investors. The long term partnership with them enables us to pass on this benefit to our clients. This is, in fact, IFC s largest syndicated loan package to Sri Lanka. The IFC provided us not only affordable funding but also relevant technical assistance and solid framework on risk management and governance. We have all our foundations firmly placed, so we now have an appetite to lend more in this environment," he said.

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Source: TendersInfo (India)

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