The Development Bank of Rwanda (BRD) has signed a $3 million (about Rwf2.2 billion) credit facility with the Great Lakes Development Bank that will see it extend credit to businesses in the agricultural, energy and education sectors.
Speaking during the signing ceremony, last week, Alex Kanyankole, BRD’s chief executive, said the credit line was the beginning of a long term partnership between the two financial institutions.
“This agreement illustrates the vitality of this cooperation which will enable BRD to be engaged in re-enforcing its private sector and small and medium enterprises operations in Rwanda,” he said.
He said firms would not be limited on the amount of credit they apply for which would be handed out and repaid in periods of up to 10 years.
Silis Rwigamba Mu Binani, Great Lakes Development Bank’s managing director, said the line of credit was part of a $10 million credit line shared between the development banks of Rwanda, Burundi and DR Congo.
The Development Bank of Burundi received $2 million while the one in DR Congo received $5 million, Rwigamba said.
“The line of credit is in line with Great Lakes Development Bank’s private sector operational priorities for long term financing to support private sector development, especially where long term financing is scarce,” he said.
Rwigamba added that, once used successfully, the bank will disburse bigger credit lines.