Sanima Bank receives $20 million loan for MSMEs from IFC «

Sanima Bank receives $20 million loan for MSMEs from IFC

Sanima Bank has received $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 last financial year, according to a press release of the bank. “The bank has received the fund after approval from the Nepal Rastra Bank in fiscal year 2022-23. Sanima Bank has placed itself among the few banks which has received such foreign loans, claims the bank.
Bank has received the message from Babacar S. Faye, IFC’s Resident Representative in Nepal, “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.
“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,” the bank adds.
Nischal Raj Pandey, Chief Executive Officer of Sanima Bank, expressed his view that fund 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 Mircro, Small and Medium-sized Enterprises (SMEs), c.aims the bank, adding that it intends to contribute towards the development of this sector while being guided by the principles of inclusivity and sustainability.