Project
Description
This USD 7 million Line of Financing is based on the Installment
Sale mode and is aimed at providing medium and long term financing
to productive Small and Medium Enterprises (SMEs) in Lebanon.
Project
Sponsors
The
line will be administered by Byblos Bank SAL. Established
in 1950, the Bank ranks amongst the largest commercial banks
in Lebanon with assets of USD 5.3 billion at the end of 2002.
Project Location
Beirut,
The Lebanese Republic.
ICD's Role and Developmental Impact
-
The project is the first ICD operation in Lebanon. This also
represents one of the two Lines of Financing approved by the
Board of Directors of the Corporation for the first time in
September 2003. The project is in line with ICD's strategy
to support the development of a strong private sector in its
member countries, and specifically the Small & Medium Enterprises
(SME) sector so often referred to as the "engine of growth"
for economic development.
- Byblos Bank has long, successful, experience of implementing
conventional lines of financing extended by other multilateral
agencies. The ICD line seeks to leverage on the Bank's experience
and market knowledge for the benefit of the Lebanese SMEs.
- A distinguishing feature of the ICD line is that it is amongst
the first Sharia'a-compatible lines of financing based on
a full agency agreement with the beneficiary bank. It is envisaged
that the line will help promote the development of Islamic
financing products. Its strategic fit with ICD's strategy
is therefore considered two-pronged.
