Economic and Social Fund for Development (ESFD) – Risk Sharing Scheme

Area of Operation: Lebanon

Duration of Assignment: October 2009 – June 2011

Name of Client: AHT Group AG

Project Description:

Funded by the European Commission, ESFD had been providing wholesale credit lines for on-lending to SME to three partner banks. During a review of the operations, the shift to a risk-sharing scheme was recommended and a feasibility study was hence proposed.

Our Services:

  • Designed the scheme and established a financial model to analyse sustainability, guarantee fund to be capitalized with approximately USD 24.4 million.
  • Carried out a feasibility study for risk-sharing scheme (partial credit guarantees for urban and rural SME in underprivileged regions of Lebanon) with corresponding market sounding and facility designing.
  • Drafted agreements with partner banks.
  • Establishing set policies and procedures in a comprehensive operation manual.
  • Presented and negotiated the scheme to partner banks.
  • Identified institutional requirements for ESFD and recommended accordingly.
  • Designed another scheme (capital of USD 2.5 million) to be implemented by ESFD for UNDP Lebanon.
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