EBG Ghana PCG

completed

This is a joint project involving IDA, IFC and the Government of Ghana (GoG), consisting of a Risk Sharing Facility (RSF) of up to the local currency equivalent of $6.25 million ($12.5 million portfolio size) for Ecobank Ghana Ltd (EBG) to be used to support lending to Small and Medium Enterprises (SME).The RSF will cover up to 50% of the credit risk of Ecobank’s portfolio of new SME loans, with IDA funds of up to $1.25 million covering up to 10% of the first loss risk. Ecobank will assume the 50% of the balance of the credit risk of the portfolio.In addition to the guarantee, the project envisages two technical assistance (TA) components: - TA to Ecobank, with the objective of transferring the necessary skills and procedures to better service the SME sector and thus enhance the banks’ capacity to underwrite new SME loans on a profitable and sustainable basis; and - TA to SMEs, which aims to help bridge the gap between the SMEs and the banks by providing some basic financial and management training to the SMEs.