The German development bank KfW Bankengruppe recently signed a guarantee facility agreement totaling EUR 6 million (USD 7.8 million) with the government of Ethiopia to benefit Ethiopia’s microfinance institutions. KfW Bankengruppe will provide a guarantee of EUR 4.5 million (USD 5.8 million) to Ethiopian banks to support loans to microfinance institutions (MFIs) and an additional EUR 1.5 million (USD 1.9 million) to provide technical assistance to Ethiopian banks and MFIs in support of the effort.
Under the facility, KfW Bankengruppe has so far signed a guarantee agreement for an unspecified amount with Zemen Bank, which is an Ethiopian bank with total assets of ETB 463 million (USD 33 million) at June 30, 2009. The microfinance institutions to which Zemen will make loans under the guarantee has not been made public.
By Jennifer Shevock, Research Associate
About KfW Bankengruppe:
The KfW Bankengruppe is a German development bank whose objective is to support economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers financial support for improvement in the areas of small and medium-sized enterprise, entrepreneurship, environmental protection, housing, infrastructure, education and finance. Total assets are EUR 400 billion (USD 517 billion) at December 31, 2009.
Sources and Additional Resources:
“KfW signs guarantee agreement to encourage banks” July 7, 2010.
http://www.ena.gov.et/EnglishNews/2010/Jul/07Jul10/116615.htm
MicroCapital Universe: KfW Bankengruppe:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfWBankengruppe+%28KfW+Bank+Group%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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