Summary of Proposed Investment
Project Number
24694
Company Name
BRED Madagasikara Banque Populaire
Date SPI Disclosed
Dec 19, 2005
Country
Madagascar
Industry
Financial Markets
Projected Board Date
Jan 20, 2006
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Apr 4, 2006
Signed : Jun 13, 2006
Project Description
This project involves a joint IDA-IFC Partial Credit Guarantee (PCG) in the local currency equivalent of $6.25 million ($12.5 million portfolio size). The PCG will apply to the portfolios of Small and Medium Enterprise (SME) loans originated by BFV-Société Générale (BFV-SG) and one of the two banks selected by the Government of Madagascar (GoM) to benefit from this PCG program. The PCG to be issued by IFC will cover up to 50% of the credit risk of the commercial banks’ portfolio of new SME loans, with IDA funds of up to $1.25 million taking the first loss risk to IFC. IDA funds will be deposited in dollars in a World Bank Trust Fund and will take 50% of the first loss risk. The commercial banks will share all losses on a 50-50 basis with the IFC-IDA PCG.
In addition to the guarantee, the project envisages two technical assistance (TA) components:
- TA to each commercial bank, with the objective of transferring the necessary skills and procedures to better service the SME sector and thus enhance the banks’ capacity to underwrite new SME loans on a profitable and sustainable basis; and
- TA to SMEs, which aims to help bridge the gap between the SMEs and the banks by providing some basic financial and management training to the SMEs.
In addition to the guarantee, the project envisages two technical assistance (TA) components:
- TA to each commercial bank, with the objective of transferring the necessary skills and procedures to better service the SME sector and thus enhance the banks’ capacity to underwrite new SME loans on a profitable and sustainable basis; and
- TA to SMEs, which aims to help bridge the gap between the SMEs and the banks by providing some basic financial and management training to the SMEs.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
BFV-Société Générale
14, rue Général Rabehevitra Antaninarenina
B.P. 196
Antananarivo 101, Madagascar
Attn: Mr. Marcel Lenguin
Managing Director
Tel: (261) 20 22 264 24
Fax: (261) 20 22 235 40
14, rue Général Rabehevitra Antaninarenina
B.P. 196
Antananarivo 101, Madagascar
Attn: Mr. Marcel Lenguin
Managing Director
Tel: (261) 20 22 264 24
Fax: (261) 20 22 235 40