I&M Bank secured a $40 million (about Sh4 billion) loan from the Dutch Development Bank (FMO) for onward lending to small business (SMEs), a boost for enterprises still struggling to access credit since the interest rate cap regime took effect.
Like most banks, they have taken to cautious loaning, to reduce risk of exposure.
FMO’s chief investment officer Linda Broekhuizen in a statement said by supporting the expansion of its operations, FMO can help give the local economy an extra boost
I&M Bank’s loan portfolio is at Sh121.1 billion of which some 30 per cent is credit to SMEs, perhaps a reason why they secured the funding.
It will be a five year loan but the interest rate has yet to be disclosed.