The International Finance Corporation (IFC) loaned on Monday USD 100 million to Angola’s Millennium Atlântico bank.
The IFC credit line, which is split in two tranches of USD 50 million each, are aimed at increasing credit for Small and Medium Sized Firms (PME) in Angola and financing the acquisition of raw-materials abroad through a credit line.
The agreement was signed by the bank’s financial risks administrator, Éder Samuel de Sousa, and IFC regional director for Africa and Middle East, Manuel Reyes-Retana.
According to the bank official, the institution will prioritize the granting of credit to projects that aid the economy to grow, such as small industries or productive sector.
On his turn, the IFC official said that the credit is expected to be reimbursed within a period of seven years, although he gave no further details on the interest rates contained in the financing contract.
However, according to Manuel Reyes-Retana Banco Millennium Atlântico is trustworthy and taking into account that it is not the sole institution the IFC has business with in Angola.
According to Manuel Reyes-Retana, one of the key priorities of the IFC in Angola is to increase the financial inclusion of small and medium sized firms and the agreement signed will enable Millennium Atlântico bank to significantly expand its credit operations towards this specific segment.
IFC estimates that roughly 92 percent of small and medium sized firms in Angola have no access to financing, which amounts to a financing deficit of USD 34 million.