The National Microfinance Bank (NMB) has signed a $65 million (about 104 billion) loan agreement with European institutions that will see the bank extend increased loans to the private sector.The European institutions involved in the transaction that signed on Tuesday, include the Netherlands Development Finance Company (FMO) in cooperation with German Development Finance Company (DEG) and a group of 14 other European Development Finance Institutions under the European Financing Partners SA (EFP).
According to a statement availed to The Citizen in Dar es Salaam yesterday, in this transaction NMB, will be able to obtain a senior unsecured long term loan in US dollars to support the working capital and investment needs of the bank’s growing private sector customer base, including large companies, SMEs and agribusinesses.
FMO will provide $32.5 million; DEG will provide $20 million while EFP will provide $12.5 million.
“NMB lends to most key sectors in the growing Tanzanian economy. An increasing number of customers is looking for longer term funding in US Dollars, to support their business and investments.
"We intend to support these customers with their foreign currency financing requirements,” the NMB chief executive officer, Mark Wiessing, is quoted in the statement.
The bank, he said, will accelerating the rollout of other foreign currency-based services such as trade finance and letters of credit, foreign exchange trading, and foreign currency accounts, which are available throughout its network of 150 branches.
And according to NMB Chief Financial Officer, Mr Waziri Barnabas, the bank will, through this facility, be able to match the currency and tenor of its funding sources with its customers’ foreign currency financing requirements. This will further improve the quality of its balance sheet.
The signing ceremony was held in the presence of the Deputy Head of Mission and Charge d’Affaires of the Dutch and German Embassies respectively, and a visiting Parliamentary Committee on Foreign Affairs and Development Cooperation of the Netherlands, currently on a mission to Ethiopia and Tanzania.
The bank, he said, will accelerating the rollout of other foreign currency-based services such as trade finance and letters of credit, foreign exchange trading, and foreign currency accounts, which are available throughout its network of 150 branches.
And according to NMB Chief Financial Officer, Mr Waziri Barnabas, the bank will, through this facility, be able to match the currency and tenor of its funding sources with its customers’ foreign currency financing requirements. This will further improve the quality of its balance sheet.
The signing ceremony was held in the presence of the Deputy Head of Mission and Charge d’Affaires of the Dutch and German Embassies respectively, and a visiting Parliamentary Committee on Foreign Affairs and Development Cooperation of the Netherlands, currently on a mission to Ethiopia and Tanzania.
Source: The Citizen, reported from Dar es Salaam, Tanzania
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