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MEF and World Bank Draw Up Credit Line for MSMEs

MEF and World Bank Draw Up Credit Line for MSMEs

The Ministry of Economy and Finance, in cooperation with the World Bank, is drawing up a credit line to increase access to finance for Micro, Small and Medium-sized Enterprises (MSMEs) in the national market, the O Económico news portal reported on Tuesday 14 May.

The organisation explains that the initiative is linked to the creation of the Loan Guarantee Fund, in the context of the implementation of the Economic Acceleration Measures Package (EAP), to strengthen the financial environment for companies.

After the Council of Ministers approved the decrees establishing the legal framework necessary for the creation and management of the Fund, the government, together with its partner, lined up details to make the credit line viable.

According to the deputy coordinator of the Economic Reforms Office of the Ministry of Economy and Finance (MEF), João Macaringue, the PAE team is focused on developing and improving the other components of the measure, adding that, as well as facilitating access to credit, the Fund will also promote greater stability and economic growth, thus supporting the sustainable development of MSMEs that are fundamental to the local economy.

Meeting at the 13th ordinary session of the Council of Ministers, the government approved legal instruments that lead to the viability of the 18.9 billion metical (300 million dollars) Loan Guarantee Fund, announced in 2022 as part of the Package of Economic Acceleration Measures.

The Mutual Guarantee Fund, Public Fund (FGM, FP), is an autonomous asset, made up of public financial resources, integrated into the Public Treasury, endowed with financial and patrimonial autonomy, which aims to allow the national bank to provide financial resources to strengthen investment capacity with more accessible interest rates for Micro, Small and Medium Enterprises operating in the agriculture, fish farming, agricultural trade and processing, tourism and housing sectors.

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