Rwanda Development Bank (BRD) last week signed guarantee agreements worth Rwf 1,507 billion with African Fund aimed at cooperation (FSA) that will help to boost the country’s development projects including electricity.
The guarantee agreement will allocate Rwf 500 million as a guarantee for a commercial building, Rwf 370 million allocated for the construction of a dam while a modern market to be built in Rusizi has received Rwf 345,500,000 guarantee.
The director of FSA, Ahmadou Abdoulaye Diallo said that they have had a good cooperation with BRD and hope that the guarantee will generate tangible productivity.
“We have signed guarantee agreement classified in three categories and I hope provided money will be used effectively and help in better implementation of these projects,” he said.
The CEO of BRD, Alex Kanyankore said that the guarantee fund will solve the matter of inadequate loan guarantee which often affects small and medium entrepreneurs. The fund will be an extra support to their guarantees.
“These agreements will help our clients to get guarantees they need. This helps the implementation of projects that would fail over lacking guarantee while the bank can receive many projects since the capacity of the bank’s guarantee is increased,” he said.
Kanyankole said that through these agreements, FSA provides a half of the guarantee while the other half is paid by the client.
Since 2013, BRD signed cooperation agreement with FSA aimed at promoting short and long term cooperation agreements concentrating on supporting small and medium financial institutions.
FSA is a cooperation fund working with 13 countries and promotes projects aimed at eradicating poverty in these countries.
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