Financial Bank - Tchad

completed

This project is an important component of the World Bank Group program to enable Chad''s small and medium sized enterprises (SMEs) and financial sector increase its participation in the construction of the oil field and increase its capacity to benefit from the oil revenue investment programs.Chad''s banking sector is very small, underdeveloped, and deprived of term deposits which banks need to extend medium and long term loans. By providing a local currency guaranty, IFC helps mobilize regional capital and channel it toward Chadian SMEs. The development of Chadian oil resources, as well as the future investments financed with oil revenue, is opening a new economic era in one of the world poorest and lest developed country.This project is one element of IFC''s SME initiative in Chad. IFC already supported the creation of Finadev, a micro-finance window of FBT. IFC''s board of directors approved the subscription by IFC of 25% of Finadev''s sharecapital as soon as it is spun-off from FBT. In the near future, IFC will consider other investments with other local partners. In 2002, IFC posted a permanent SME program coordinator in N''Djamena to increase its effectiveness in supporting local entrepreneurs.