Sanima Bank received 20 million dollar loan for MSMEs from IFC
After receiving approval from the Nepal Rastra Bank, the bank received the funds in the fiscal year 2022/23.
KATHMANDU: The International Finance Corporation has granted Sanima Bank USD 20 million in External Commercial Borrowing (ECB) (IFC). The World Bank Group’s private sector lending arm is the IFC. Given the liquidity crisis, Sanima Bank reached an agreement with IFC to bring ECB in the previous fiscal year.
After receiving approval from the Nepal Rastra Bank, the bank received the funds in the fiscal year 2022/23. Sanima Bank is one of the few banks that has received such foreign loans.
Mr. Babacar S. Faye, IFC’s Resident Representative in Nepal, sent the following message to the bank: “This investment in Sanima Bank aims to support the economic recovery in Nepal by facilitating greater access to finance for SMEs.” “Assisting SMEs will allow them to grow and create more jobs,” said Babacar S.
Faye, IFC’s Resident Representative in Nepal. “At the same time, the cash injection will help Nepal’s liquidity crisis and declining forex reserves.” IFC values Sanima Bank’s strong commitment to developing Nepal’s SME ecosystem and looks forward to a long-term partnership.”
Mr. Nischal Raj Pandey, Chief Executive Officer of Sanima Bank, stated that the funds received from the IFC will make it relatively easier to provide loans in the MSME sector, despite the current difficult liquidity situation.
According to the agreement, this fund will be used to make loans to Micro, Small, and Medium-sized Enterprises (SMEs). The bank intends to contribute to the development of this sector while adhering to the inclusivity and sustainability principles.
Sanima Bank operates 127 branches and 120 ATM networks across all seven states.