Bank of Africa, Mali RSF

completed

_x000C_This project involves a joint IDA-IFC Risk Sharing Facility (RSF) in the local currency equivalent of $6.25 million ($12.5 million portfolio size). The RSF will apply to a portfolios of loans to Small and Medium Enterprises (SME) and microfinance institutions originated by Bank of Africa Mali (BoA Mali), one of the banks selected by the Government of Mali (GoM) to benefit from this RSF program. The RSF will cover up to 50% of the credit risk of the commercial banks’ portfolio of new loans. The commercial banks will share all losses on a 50-50 basis with the IDA-IFC RSF. In addition to the guarantee, the project envisages two advisory services (AS) components: - AS to the commercial banks, with the objective to better service the SME sector; and - AS to SMEs, which aims to help bridge the gap between the SMEs and the banks by providing some financial and management training to the SMEs.