Sanima Bank receives USD 20 million loan for MSMEs from IFC

NL Today

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Kathmandu: Sanima Bank has received USD 20 million in External Commercial Borrowing (ECB) from International Finance Corporation (IFC). IFC is the private sector lending arm of the World Bank Group.

Considering the liquidity crisis, Sanima Bank had made an agreement with IFC to bring ECB in the last financial year, the bank said in a press release.

The bank received the fund after approval from the Nepal Rastra Bank in FY 2022/23.

“This investment in Sanima Bank aims to support the economic recovery in Nepal, by facilitating greater access to finance for SMEs. Helping SME will notably enable them to grow and create more jobs,” said Babacar S. Faye, IFC’s Resident Representative in Nepal.

“At the same time, the cash injection will also contribute to easing Nepal’s liquidity crunch and declining forex reserves. IFC greatly appreciates Sanima Bank’s strong commitment to developing the SME ecosystem in Nepal, and looks forward to building a long-term partnership.”

Chief Executive Officer of Sanima Bank Nischal Raj Pandey expressed his view that funds received from IFC will make it relatively easier to provide loans in MSME Sectors even in the current difficult situation of liquidity.

As per the agreement, this fund will be utilized to provide loans to Micro, Small, and Medium-sized Enterprises (SMEs). The bank intends to contribute towards the development of this sector while being guided by the principles of inclusivity and sustainability, the bank added.

Sanima Bank is providing banking services from 127 offices and 120 ATM networks in all seven provinces.