German DFI DEG provides $30m loan to DFCC Bank

The German development finance institution DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, member of KfW Bankengruppehas provided a loan of $30m repayable over eight years to DFCC Bank, to be utilised for granting sub loans targeted at the SME sector across a range of businesses including the renewable energy sector.

The loan agreements were signed in Colombo, by the CEO of DFCC Bank Nihal Fonseka and Senior Vice President, DEG Bernd Tuemmers.

Fonseka said 'This loan granted by DEG to DFCC reinforces the relationship of the two institutions. It is also a recognition of Sri Lanka's much improved macroeconomic fundamentals, DFCC's financial strength as well as the role that is played by DFCC in the post conflict growth phase of Sri Lanka where we have extended our services to all parts of the country and are financing SME projects in diverse sectors.

This credit line will supplement and diversify DFCC's long term funds pool and support lending activities to green field projects". Tuemmers said "DEG has had a good relationship with DFCC. We are happy to be a partner in the development of Sri Lanka and even in the midst of many adverse global economic conditions. Of particular relevance to the granting of this credit line is DFCC's continuing commitment to supporting entrepreneurs in the SME sector including the North and East".