JBIC tranche of USD 150m for SME sector

BY ANJANA Samarasinghe

MINISTER of Advanced Technology and Enterprise Development Rohitha Bogollagama said USD 150 million been allocated to boost small and micro industries.

These funds will be distributed to industrialists through 11 banks as a loan schemes. Small industrialists could borrow funds for the expansion of their business or for technology upgrades.

This is a project funded by the Japanese Bank of international Cooperation (JBIC).

Ministry of Advanced Technology and Enterprise Development co-ordinates the project among 11 credit agencies.

The project will enable these credit agencies to refinance their loans through JBIC. JBIC will release funds upto the allocation limit for banks. Banks can claim their funds from JBIC through the Ministry.

Under this project, the Bank of Ceylon (BOC) has introduced two unique loan schemes SMILE-3 and E-FRIENDS-2 for the Small and Micro Industries. An official of BOC said two loan schemes provide funds through the general loan scheme and technical transfer assistance scheme.

SMILE-3 schemes specially focused at starting new venture, further expansion of the business, quality improvement and skill development. E-FRIENDS-2 is designed to assist in introducing environmental friendly manufacturing processes for small and micro industries.

E-FRIENDS-2 general scheme provide up to Rs. 50 million at an interest of 6.5% per annum and technical assistance loan provide up to Rs. 750,000 with 2% interest.

SMILE-3 general scheme funds up to Rs. 10 million with a 9% annual interest rate and technical assistance loan scheme will provide up to Rs. 2.7 million with 2% interest.