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Publish Date : 30-Jul-2013

A $15 million loan has been inked by the Asian Development Bank (ADB) with Nations Trust Bank to get Small and Medium-sized Enterprises (SMEs) better access to finance to start or expand businesses.

According to Investment Specialist in ADB's Private Sector Operations Department, Monisha Hermans, "As the economy continues its robust growth, SMEs' demand for finance has steadily increased. However, SMEs are experiencing difficulties accessing funding, particularly longer-term. Providing financing opportunities will help reach underserved customers and close the funding gap."

Nations Trust Bank will extend the life of its loans from the current average of 2.25 years to up to five years to boost inclusive financial development. A minimum of 50 percent of loans will be offered to entrepreneurs outside Colombo, of which 30 percent will focus on SMEs based in terrorism and tsunami-hit areas in the North, East and South.

About 20 percent of the facility will aim women borrowers.The loan will meliorate financial inclusion by setting lending targets. ADB proceeds will be open to SMEs with a turnover not exceeding Rs. 600 million.

The loan will be disbursed in two tranches to aid Nations Trust Bank better manage its growth.

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