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The bank is expected to use this to grant further loans to SMEs hit by Covid-19 and hurricanes
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This is the fourth OFID loan to Banco Ficohsa
The OPEC Fund for International Development has sanctioned a loan of $25 million to Honduran lender Banco Ficohsa, said local reports on Friday, July 2.
The bank is expected to use this to grant further loans to small and medium-sized enterprises that have been affected by the Covid-19 pandemic and the two hurricanes that struck the country last year, explained the reports.
This, the fourth OFID loan to Banco Ficohsa, is expected to benefit SMEs in the agriculture and manufacturing and textiles sectors.
The reports said the three earlier loans were already used to provide more than 130 sub-loans to SMEs in the same sectors.
OFID’s operations in Honduras have reportedly focused on energy, agriculture, transportation, financial (SMEs), and water and sanitation sectors.
OFID Director-General Abdulhamid Alkhalifa was quoted by the reports as saying: “Supporting small businesses is key for economic stability and for job creation.”
He added: “Banco Ficohsa is in a strong position to expand the reach of this loan and ensure financial sustainability of SMEs in critical sectors.”
