Bancoldex to offer new SME credit line, minister urges large companies to seek finance on capital markets to free funds for SMEs


Colombia's export development bank Bancoldex will approve a new line of credit worth 1.5 trillion pesos (US$587m) for small- and medium-sized enterprises (SMEs), according to commerce minister Jorge Humberto Botero.

The credit line is to be offered through local ‘first floor’ banks with a 12-year maturity, Botero said.

The announcement came during a meeting with Bancoldex board members, where Botero said 25% of commercial borrowers receive 69% of the financial system's total loans. Large companies should seek financing on the capitals market in order to free up funds for SMEs, he added.

In September, 32% of Bancoldex' lending was directed to SMEs, compared to only 7% at year-end 2001, according to figures from the bank. Bancoldex aims to raise that percentage to 35% by the end of this year. The bank's lending to SMEs rose 99% in the first half to 407bn pesos (US$153.4m), compared to the same period in 2003.

Source: BNamericas.com



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