By Jessica Combes / CPI Financial
SOURCE : CPI Financial - EDB Board approves funds for start-ups and SME credit guarantee scheme
The Board of Directors reviewed EDB’s significant achievements for 2018 to date, such as the UAE National Home Finance portfolio reaching AED818 million, up from AED213 million during the first quarter of the year; SME financing reaching AED345 million; and the launch of the Emirates Moveable Collateral Registry Corporation (EMCR), which achieved remarkable success with a record 11,617 registered certificates for movable and mortgaged assets. The Electronic Asset Registry System is already used by 50 of the total number of banks operating in the UAE with more than 344 system users.
The Board approved the plan to launch a Direct Financing Programmeme for start-ups and emerging companies, to support Emiratis and providing them with the necessary credit to start their companies and develop their businesses. A AED50 million fund has been approved for 2018, from which the programme will finance up to AED2 million for start-ups owned by Emiratis (with more than 51 per cent ownership) in accordance with the Bank’s terms and conditions. The Direct Financing Programme has a competitive interest rate and a flexible repayment option.
The Board of Directors also approved a AED 100 million fund for the Credit Guarantee Scheme to finance SMEs, by financing of up to AED2 million for start-ups where the bank guarantees 85 per cent of the value of the financing, and AED5 million for existing companies where the bank guarantees 70 per cent of the value of the financing.