EXIM Bank secures 16bn/- Loan from FMO

Exim Bank Chairman Yogesh M. Manek (left) and the FMO, Director Financial Institutions Ruurd Brouwer (right) 

BY BUSINESS REPORTER

EXIM Bank Tanzania has secured a $10 million (TSH 16bn) loan from FMO, a Dutch development bank, which is poised to set the stage for a revitalised fiscal environment in the banking sector in Tanzania.

The historic agreement was signed in Dar es Salaam yesterday between Mr. Yogesh M. Manek, Chairman, Exim Bank and Mr. Ruurd Brouwer, Director Financial Institutions, FMO.

The loan will be payable within a seven year tenure at an interest rate of six percent according to Exim Bank Chairman Yogesh M. Manek.

Speaking to journalists shortly after the signing ceremony, Manek said the loan will help find solution to the long term credit needs of Small and Medium Enterprises (SMEs) operating within the country.

 “We are happy that FMO has expressed faith in us", he further added. Indeed, it’s another feather in the bank’s cap!

 

Manek said Exim bank’s plans are afoot to further shore up long term borrowings during the current year, pursuant to the continuous demand for long term credit in the economy, which is a positive indicator to a growing economy.

“Articulating such a financial strategy serves to put the weight of surplus monetary supply behind the growing long-term credit needs of the bank’s clients in Tanzania,” he added.

 The FMO Director Financial Institutions, Mr. Ruurd Brouwer, said “Entrepreneurship is key in creating sustainable economic growth and improving people’s quality of life. We have chosen to partner with Exim because the institution has a reputable financial stand.”

“By supporting Exim’s growth, especially in SMEs and agriculture based enterprises, we believe that our contributions will have a long term impact on the country’s economic development,” he added.

He added that FMO has for many years been supporting sustainable private sector growth in developing and emerging markets by investing in enterprising entrepreneurship,

“A strong private sector leads to economic and social development; empowering people to employ their skills productively can enhance the quality of their lives

“This will not be the end of our relationship. W e are looking foward to working together with Exim Bank again,” he added.

He said FMO focuses on four sectors that have high development impact: financial institutions, energy, housing and agribusiness. With a commanding investment portfolio of EUR 5 billion, including EUR 1.5 billion worth of investment in Africa, coupled with an active presence in 20 African countries, encompassing Nigeria, Ghana and Mozambique.

Exim Bank has succeeded in establishing its dominion in the banking sector with an impressive territorial map dotted with 75 footprints, comprising 22 branches in Tanzania, 2 overseas subsidiaries in Djibouti and Comoros Island and 51 ATMS. A healthy asset size of T. Shs. 855 billion,as ascertained on 31^stDec. 2011, confirms Exim Bank’s robust and flourishing status.

Extending its services globally, Exim Bank caters to the international needs of its customers through correspondent banking relationship with other international banks that include HSBC Bank, Banker’s Trust, U.S.A. and Deutsche Bank AG, London.