EIB Offers 5 Million Credit Line to SMEs

The loan agreement was signed on Monday between EIB vice president, Plutarchos Sakellaris and MLC chief executive officer (CEO), Ashraf Esmael, in the presence of Yandraduth Googoolye, first deputy governor of the Bank of Mauritius.

Other high ranking officials and representatives of the European Union were also present.

“The SME segment is of vital importance to us. They produce 37 per cent of GDP, and that amounts to around Rs 120 million worth of output,” said Esmael.

He further explained, “Fostering SMEs is seen as a priority in both developed and emerging economies.”

“Our partnership with the EIB with this first line of credit is a concrete demonstration of our commitment to local businesses operating in the SME segment and to the Mauritian economy at large,” he said.

“This step, we hope, is only the first building block to a lasting and highly valued relationship between the two institutions,” he added.

Sakellaris talked on the importance of support to SMEs.

“Sustainable growth, especially at a time of global economic crisis, can only take place when small and medium sized companies can grow,” he said.

Adding, “Small businesses and entrepreneurs are crucial to identifying new opportunities and creating jobs.”

He added that this sector accounts for 50 per cent of employment in Mauritius and contributes to over a third of GDP.

Googoolye, for his part stated that SMEs are critical to the country’s development and have been placed on the national agenda.

“Banks are taking bold steps for them, including the setting up of special SME desks,” he said.

To this date, the EIB has disbursed 20 million euros in SMEs on the island.

The EIB was rated last year as the world’s largest multinational financial institution, supplying 72 billion euros for 460 projects across the world.