Government appoints DFCC Bank administrator of 90 million Euros credit line
View(s):The Sri Lankan Government has appointed DFCC Bank to administer the new credit line of EUR 90 million extended to Sri Lanka by the European Investment Bank. The management mandate agreement and the on-lending agreement were exchanged between DFCC Bank an the Ministry of Finance and Planning recently.
The European Investment Bank (EIB) is owned by the member states of the European Union. DFCC Bank has had a long standing relationship with EIB, and in the past had dedicated two credit lines exclusive to DFCC amounting to EUR 40 million followed by EUR 50 million. DFCC also managed the multi bank EUR 60 million EIB Post Tsunami credit line, a DFCC media release said.
Treasury Secretary Dr. P.B. Jayasundera said that while the credit line will give an impetus to the long-term funding base of the country, banks are encouraged to find other avenues of raising funds overseas to meet their funding requirements. Funds from the credit line will be utilised to develop the Small & Medium Enterprise (SME) sector and to encourage renewable energy based power generation schemes and energy efficiency measures. Beneficiaries can obtain long term loans at very attractive interest rates.