Dr. Joseph Torbey

BEIRUT: Credit Libanais Monday received a $100 million credit line from the European Bank for Reconstruction and Development to expand finance and trade facilities for small and medium-sized enterprises in Lebanon, the bank said in a statement. It added that the EBRD financing comprised a senior loan to the value of $50 million to enhance its lending to SMEs, in addition to a trade financing limit of $50 million, under the Trade Facilitation Program to finance cross-border trade facilities.
“SMEs constitute around 95 percent of the total companies in Lebanon and provide almost half of the market employment opportunities, despite facing significant financing constraints. EBRD’s financing package is expected to expand SME lending by 10 percent and the number of SMEs in Lebanon by 25 percent,” the bank said.
Credit Libanais Group Chairman and General Manager Joseph Torbey said: “EBRD’s investment will assist Credit Libanais in providing further support to SMEs, in light of the challenging domestic and regional situation. This funding will also contribute to boosting international trade, thereby strengthening the economy.”
Torbey added that this was the first time Credit Libanais and EBRD had joined forces and said he looked forward to a long-standing partnership.
“This deal is among several other transactions that Credit Libanais has completed, as part of its strategy to support the private sector and the SMEs in particular and in achieving its objectives related to Corporate Social Responsibility,” he said. Gretchen Biery, associate director and Lebanon head at EBRD, said: “We are delighted to partner with Credit Libanais to further support small businesses in Lebanon, which we consider the backbone of the economy and to boost intraregional trade.”
The EBRD Trade Facilitation Program was launched in 1999, with the aim of promoting international trade between its countries of operations, in the form of guarantees and short-term loans to selected participating banks and factoring companies. EBRD’s trade financing facility will support regional and international integration through trade and increased access to finance for importing and exporting firms in Lebanon, especially SMEs.
The EBRD is a multilateral bank that promotes the development of the private sector and economy of more than 38 countries across three continents. It is owned by 69 countries, as well as the European Union and the European Investment Bank.
The EBRD started investing in Lebanon in 2017 and today has committed almost 500 million euros ($550 million) in the country. Its focus is on supporting private-sector competitiveness, promoting sustainable energy supply and enhancing the quality and efficiency of public service delivery.