NMB Bank has opened negotiations with potential funders for an additional US$30 million worth of lines of credit for exporters’ loans.
The bank said it had in excess of US$50 million in lines of credit facilities.
Last week, NMB signed a €12.5 million (US$13.4 million) facility with the European Investment Bank (EIB).
NMB chief executive officer Gerald Gore told NewsDay Business on the sidelines of the EIB signing ceremony that the fresh funds would flow by year-end. Gore said:
We are looking at receiving between US$$20 million and US$30 million.
We already have got funders who we are talking to. We wanted to first fully utilise this €12,5 million facility and when we are done we then move to the next. We are not trying to do anything else other than (fund) exporters because that is the only way you are guaranteed repayment of those lines. The timelines largely depend on… how quickly we exhaust this one (the EIB loan) but we are looking at before the end of the year for those other additional lines.
Gore said funds loaned to exporters carried less risk because their repayment history was good.
This comes as local companies continue to battle access to foreign currency.
The foreign currency auction system, which offered hope to firms when it was introduced in 2020, has accumulated a huge backlog.