IFC, a member of World Bank Group, has signed an agreement with Rwanda’s central bank to provide local currency loans to support growth of the nation’s emerging private sector.
IFC offers local currency financing in many countries, usually by entering into swaps with major international banks. As there are currently no banks in Rwanda that are able to provide such long-term swaps, the National Bank of Rwanda will provide IFC with local currency through swaps until a commercial swap market develops.
François Kanimba, governor of National Bank of Rwanda, said: “Through this initiative, the National Bank of Rwanda and IFC will work together to further develop Rwanda’s financial markets to support private sector growth and promote sustainable economic growth. We are committed to working with partners such as IFC to develop vibrant and efficient capital markets in Rwanda.”
Nina Shapiro, VP of finance and treasurer at IFC, said: “IFC is delighted to launch this initiative in partnership with the National Bank of Rwanda. We look forward to helping develop a long-term commercial swap market in Rwanda that will support the continued growth of the private sector.”
Janamitra Devan, VP of financial and private sector development, said: “Promoting a strong financial system is essential for sustainable economic development and an important part of IFC’s effort to reduce poverty and improve people’s lives. IFC and the World Bank are committed to working with partners such as the National Bank of Rwanda to extend financial services to people and places that need them the most.”