[email protected]
+44 (0)1458 253536

My account

SME economic news

  1. Home
  2. News
  3. SME economic news
November 7, 2019

Fiduciam secures largest German deal to date

Bridging lender Fiduciam has completed its largest German deal to date, with a complex €3.5m transaction to a prominent local real-estate investor in the North Rhine-Westphalia region. The deal provides strong evidence that Fiduciam’s dynamic approach has successfully taken root following its expansion into Germany earlier in the year.

The borrower, a prominent and experienced real estate investor, needed to refinance an expensive acquisition loan for part of a diverse portfolio of properties. This contained multiple asset classes at different stages of development.

The portfolio includes a 14-unit residential building which was not yet fully completed; an old mining station which is now a fully occupied commercial property with listed heritage status, and a large plot of construction land with an existing structure that needed to be demolished to make way for further residential development. There were also multiple borrowers with different legal structures including a number of SPVs.

Fiduciam’s flexible approach meant that it was able to take on the project when high street banks would not, which enabled the deal to go through.

Fiduciam’s German subsidiary, Fiduciam GmbH, received its licence in January, to introduce bridging finance solutions to German SMEs and entrepreneurs. Loan sizes range from €500k to €25m, with interest rates starting at just 0.6% per month and terms of up to three years.

Henrik Takkenberg, co-founder of Fiduciam says, “Fiduciam is unusual in Germany in arranging this type of loan as German banks will typically not provide loans of this nature or complexity at such short notice. It is therefore the perfect time for Fiduciam to step up its operations in Germany, with its dynamic residential and commercial property market, especially in the SME sector in which we specialise. This deal is evidence that Fiduciam is taking a firm foothold in the German market.”

Robin Felgenhauer, Fiduciam’s BDM for Germany comments, “Fiduciam is particularly well-equipped to arrange finance up to €25m, especially as there is a lack of supply in the German market at present. We take pride in our ability to handle complex deals that other providers cannot or will not touch. Because we go the extra mile, we were able to get this deal over the line and meet our client’s needs.”

November 7, 2019

New IR35 triple whammy could devastate lives, leading accountancy firm warns

Contractors are set to be hit by a triple whammy of pay cuts as their employers introduce new ways of working to ensure they meet impending HMRC guidelines.

That’s the verdict of a leading accountancy firm which says the much-maligned IR35 legislation, which will be enforced from next April, will have a far-reaching impact on tens of thousands of workers.

Having enjoyed tax-efficient lives by paying themselves through limited companies, many contractors now face being placed on the payroll of the business they have been working for.

That will mean they lose thousands of pounds as they are placed into 20% or 40% tax brackets, while they will have to pay National Insurance contributions, potentially for the first time in many years.

Paul Hornby, managing director of Cumbria-based JF Hornby and Co, said: “There are lots of people who very soon are likely to find themselves in serious financial trouble if they have been living lifestyles in line with earnings which soon may take a serious hit.

“There are so many people in this area who are working 40 hour weeks at the likes of Sellafield or BAE as contractors and they are right in the firing line with IR35.

“Now is the time for them to be checking their paperwork, speaking to the companies which procure their services and understanding if and how they may be affected.”

The IR35 legislation is designed to prevent individuals from setting up a business and paying lower rates of tax through it, when they are effectively in full-time employment with a company.

People who are employed as contractors, but only work for one business, are firmly in the sights of HMRC.

This is because the taxman believes they are effectively carrying out the work of a permanent staff member, but getting around paying higher rates of tax and National Insurance by operating as a contractor through a limited company.

Individuals who do this are able to pay themselves a salary up to the tax-free threshold of £12,500 without financial penalty. They can also pay themselves £2k in tax-free dividends, with everything else up to £35,500 taxed at a rate of just 7.5%.

The main tax efficiency comes through the ability of the individual to split some of their income with a spouse or partner, which means in many cases, a minimal amount of tax is paid.

Under the IR35 rules, a majority of those people will be moved into a position where they are on the payroll as an employee of the business they had previously served as a contractor.

That means they will be taxed at the appropriate PAYE rate and will have to pay National Insurance contributions – as will their employer.

“This is a triple whammy for these people,” said Paul. “They have been accounting for their finances and tax in a perfectly legal and legitimate way, but they are being targeted.

“Because the employers will have to start paying National Insurance contributions for these people too, the likelihood is that any salary they are offered will take this into account; there’s no way these big employers are going to soak up the cost.

“So if you look at a couple who between them have been earning a strong joint income and have the home, cars and lifestyle to go with that, they are in for a massive shock.”

There have been a number of high profile IR35 cases to date, with the legislation for the public sector already in place.

NHS Digital has been hit with a £4.3m bill for falling foul of the rules, while former BBC presenter Christa Ackroyd faces a bill of more than £400k.

There is mounting pressure on MPs to sign up to a motion which calls for the impending laws to be scrapped, with a number of organisations which represent contractors joining together in a tour de force.

Paul said: “Right now, this is coming. The government is showing no signs of slowing down. A lot of people are in for one hell of a roller coaster ride. This will devastate lives, families and marriages, make no mistake.

“This is not something which can be put to the side until the last minute. It’s imperative anyone who might be affected acts now.”

November 7, 2019

Bibby Financial Services appoints head of business centre for trade finance

Global SME partner, Bibby Financial Services (BFS), has announced the appointment of Karl Leitelmayer as its head of business centre for trade finance.

Karl is an invoice finance specialist with over 30 years’ experience in the financial services sector. He joins BFS after 19 years at Lloyds Banking Group, most recently as head of broker channel sales – invoice finance. During this time, Karl was instrumental in the redesign and launch of Lloyds’ broker offering to the invoice finance market.

Karl’s career has also seen him lead teams within SME and mid markets banking and asset finance for Lloyds Banking Group.

Karl will be based out of BFS’s Manchester and Banbury offices, heading up a national team of 10 trade finance client managers. Karl will be focused on continuing to build BFS’s trade finance market share by providing first class customer service through a motivated and engaged client management team.

Speaking of his appointment, Karl said:

“I’m thrilled to be a joining a company that is committed to supporting SMEs and the growth of the UK economy. I’m hugely excited by the opportunity to develop its already well-established trade finance offering, particularly for the SME sector which is typically underserved with this type of funding.

“Businesses are operating in an increasingly uncertain environment, so it’s crucial the right support is there for them to grow.”Gary Griffiths, Managing Director of Trade Finance, added:

“BFS is committed to supporting UK businesses through Brexit and beyond which is why we’ve pledged our support to the Business Finance Council’s SME Finance Charter. Karl’s extensive experience in providing working capital solutions to businesses of all sizes makes him well placed to support this commitment.

“We’re looking forward to working with Karl to support the growth of our trade finance offering and provide UK SMEs which trade internationally with the funding solutions they need to thrive.”

November 6, 2019

WMCA hits £5m milestone in apprenticeship levy fund and helps 150 new apprentices into work

The Apprenticeship Levy Transfer Fund set up to supercharge apprenticeships in the West Midlands has hit a £5m milestone thanks to contributions from large employers.

And the fund has now created more than 150 new apprenticeships at small to medium-sized businesses across the region.

The West Midlands Combined Authority (WMCA), which set up the fund, says the £5m milestone is just the start – it is hoping to secure up to £40m to rejuvenate apprenticeships across the region.

Local people are already benefiting from the fund. Hockley Pattern and Tool Company Ltd, of Halesowen, took on four apprentices in September thanks to the fund, which pays for their training costs (see case study below).

Andy Street, the mayor of the West Midlands, said: “We’ve made excellent progress with the apprenticeship levy since our £69m Skills Deal agreement with government last summer.

“We knew we could make a real difference to people’s lives in the region by reinvesting money in the West Midlands which would otherwise have been lost to central government in London, and using it to support small to medium businesses to meet the costs of apprenticeship training.

“Thanks to large organisations donating their unspent levy, we’re creating new job opportunities at companies who may otherwise have been unable to afford to hire apprentices.

“I’ve met some of the apprentices who have been hired as a result of our fund, and it’s clear we are making a difference to their lives. The next step is to continue to get more firms to pledge their unspent levy so we can hit our £40m target, allowing us to create more apprenticeship opportunities, benefiting both businesses and residents across the region.”

The apprenticeship levy is charged by HM Revenue and Customs on all businesses with a payroll over £3m. The levy money is held centrally by government, and businesses across the country can apply for a slice of that funding to pay up to 95% of the costs of training their apprentices. After a two-year period, unspent levy contributions are ‘sunset’ and retained by the government.

The £69m Skills Deal agreed with the government in summer 2018 – the first of its kind in the country – set up the Apprenticeship Levy Transfer Fund by allowing the WMCA to partner large organisations with local small to medium-sized enterprises (SMEs). This means the large employers donate a portion of their unspent apprenticeship levy funds to the smaller companies, covering 100% of their apprenticeship training and assessment costs.

This approach keeps levy money within the West Midlands region, boosting skills, job opportunities and productivity by supporting more young people and adults of all ages into work.

The £5m contributed so far is the result of large organisations – including Lloyds Banking Group, BBC, National Express and the University of Birmingham – joining the WMCA partnership.

Jo Harris, Lloyds Banking Group ambassador for the Midlands, said: “Working with the WMCA to increase the number of apprenticeships and address skills gaps in the region supports our ongoing commitment to help Britain prosper.

“Access to fully subsidised apprenticeship training will mean that SMEs can recruit and train more apprentices to help their business grow. Our investment will open up new apprenticeship opportunities for people across the West Midlands, enabling them to develop the knowledge, skills and behaviours needed to succeed in their careers.

“I would encourage other large businesses to help to boost the local economy by donating their unspent levy to smaller employers.”

Cllr George Duggins, WMCA portfolio holder for productivity and skills and leader of Coventry City Council, said: “This is a great milestone and shows we’ve made a strong start in using levy money locally to create new apprenticeship opportunities.

“Now we want to accelerate our progress to create hundreds more apprentices and build up the funding available to SMEs to take on new apprentices or upskill their existing staff with apprenticeship qualifications.”

The WMCA is now calling on employers who may not have considered hiring apprentices to tap into the Apprenticeship Levy Transfer Fund. Large organisations are also being encouraged to get in touch to discuss transferring their unspent levy. For more information, visit www.wmca.org.uk/apprenticeship-levy or contact [email protected]

Case study – Levy Transfer helps Halesowen tool manufacturer hire future engineers

Hockley Pattern and Tool Company Ltd, of Halesowen, specialises in the design and manufacture of tooling for composite and metallic parts for the aerospace, automotive, defence and nuclear sectors.

Founded in 1979, its prestigious clients include BAE Systems, Jaguar Land Rover, Rolls-Royce, GKN and McLaren.

The company has more than 55 employees at two sites and took on four apprentices at its Lodgefield Road premises at the end of September, thanks to the WMCA’s apprenticeship levy transfer fund, which is paying for their training in full. They are currently learning how to operate computer numerical control (CNC) machines and manual machines used in patternmaking.

Production manager Alan de Grey said: “When we found out about the fund, we realised it was a great opportunity, both for our apprentices and for our business.

“As well as making sure they have the skills needed to do their job, we’d like our apprentices to develop their careers within the business. They’re already showing great potential, and we see them as the technical engineers and project managers of the future.

“We wouldn’t have been able to take as many of them on without funding from the levy transfer, which is enabling them to gain practical and theory training from Dudley College.”

Apprentice Tyler Kay, aged 17, from Upper Gornal, said: “The WMCA scheme is very useful for young people like me, as it allows us to gain valuable skills and experience in the workplace. It helps to kick-start our career in the engineering industry. Without the funding it wouldn’t be possible for me personally to get such a good apprenticeship and gain some great skills.”

Apprentice Derry Naylor, aged 16, from Cradley Heath, said: “Thanks to the WMCA and the outstanding Dudley College staff, I have the opportunity to become an engineer. If it wasn’t for the funding, I wouldn’t be working here. This job is perfect for me because it’s local, the pay is great, and I can learn everything needed to become a mechanical engineer. This job will help me to make my dream of owning a nice car and house come true.”

Apprentice Warayut Muensai, aged 16, from Pensnett, said: “The funding through the WMCA scheme is the start of a great future in the engineering industry. I have managed to get an apprenticeship in a really good company, while exploring different sides of the industry – aerospace, automotive, and in future, nuclear too. This is a fantastic opportunity for young people like me to have a good, sustainable job. We learn while we are getting paid and go to college two days a week to learn the theory side of work.”

Hockley Pattern and Tool Company’s application for levy funding was supported by training provider Dudley College, which is delivering the training for all four apprentices.

November 6, 2019

More applications to finance roles, despite a decline in pay

Are you looking to ramp up your hiring efforts as Brexit pressure eases? Well, according to the latest job market report from CV-Library, the UK’s leading independent job board, it’s definitely a good time. In fact, applications for new finance jobs have increased by a promising 13.3% year-on-year.

This is despite the findings, which analysed job market data from October 2019 and compared it with findings from October 2018, also revealing that average pay for new finance roles fell by 1.6% year-on-year.

Lee Biggins, founder and CEO of CV-Library, comments: “Finance professionals are clearly keen to move jobs right now and with the country now facing a significant break between any likely conclusion to Brexit, it appears to be a positive time to hire.

“That being said, the drop in pay suggests that employers are remaining wary; and they have good reason for this. While applications are up, the result of the upcoming general election could have a huge impact on the job market and our future in the EU.”

According to the findings, there were 10.3% more finance jobs on offer in October, suggesting that companies across the sector are pushing forward with their hiring efforts, despite not being able to offer higher pay.
Biggins continues: “While many companies are tempted to wind down in the lead up to Christmas and the New Year, it’s a good opportunity to get ahead with your hiring plans. The promise of higher pay is driving applications up right now, but it’s important to evaluate and assess the suitability of a candidate before offering them a bumper new pay packet.

“Set up a structured, fair and thorough hiring process to give you the best possible chance of making a great hire. Rushing or cutting corners can do more harm than good, and it can increase your chances of letting good candidates slip through the cracks.”

November 5, 2019

Four-day week would cost the public sector billions, says CPS

At its recent party conference, the Labour Party committed to reducing average working hours to 32 hours a week – effectively creating a four-day week.

A new paper by Jethro Elsden, data analyst at the Centre for Policy Studies, attempts to evaluate the costs for the public sector. The report featured in The Times this morning.

While it is extremely difficult to predict the state of the labour market in 10 years’ time, Elsden shows that at current productivity levels, the cost of this measure would be £45bn – the equivalent of a 10p rise in the basic rate of income tax.

Making extremely generous assumptions about the productivity gains from employees working more efficiently during those shorter hours, this might fall to £17bn – though it should be stressed that there is very little academic evidence to support such an optimistic forecast.

The Labour Party have argued that the costs of a four-day week could be covered by wider productivity increases across the economy and within the public sector. But this is highly unpersuasive.

ONS data shows that public sector productivity between 1998 and 2016 grew at just 0.2% a year – far below the figures needed to support such a reduction in hours.

Even if Labour’s economic management did result in a productivity miracle, the fall in hours – if not supported by hiring extra staff – would come at the cost of worse public sector performance, as workers who improved their efficiency by 10% were allowed to cut their hours rather than seeing the gains channelled into improved public sector performance. This does not seem terribly advantageous to the taxpayer.
Indeed, even the paper which Labour commissioned on this topic admits that the imposition of a 35-hour week in France resulted in a shortage of hospital staff, and that sectors such as health and social care are likely to deliver lower productivity increases than the wider economy.

To appreciate the scale of this measure, the £17bn figure would represent the combined budgets of the Home Office and Ministry of Justice. The £45bn figure is equivalent to the entire defence budget.

In short, in the absence of historically unprecedented productivity gains, a four-day week in the public sector would mean delivering significant cuts to wider government, or a huge increase in taxes – or accepting a lower standard of public services as any productivity gains went towards cutting workers’ hours rather than improving output.

Jethro Elsden, data analyst at the Centre for Policy Studies, said:

‘This proposal puts the cart before the horse. We need to raise productivity before we can afford to shorten the working week, not vice versa – and public sector productivity growth over the last couple of decades has been almost static.

‘There appears to be no evidence showing such a cut in hours could be cost-neutral. So either other spending would have to be cut, or taxes would have to rise, with an hefty cost of between 4p and 10p in the pound on the basic rate of income tax, and the evidence pointing to the higher end of that range.’

Robert Colvile, director of the Centre for Policy Studies, said:

‘Even the paper Labour commissioned on this topic accepts that higher productivity can lead to shorter hours, rather than vice versa. And given the terrible productivity record of Britain’s public sector, it is very hard to see how such gains could be made, or why taxpayers should be asked to accept a worse service so that public sector staff can have shorter hours.’

November 5, 2019

Sudden jump in cost of bank loans for businesses as banks fear Brexit risks

The average interest rate on new bank loans for businesses has suddenly jumped from 2.56% to 3.05% in the last month as banks turn increasingly cautious on Brexit risks, says Growthdeck, the private equity investment firm.

Rates on new business loans are now at their highest level in more than a decade. Average rates fell below 3% in February 2009, in the middle of the last recession, and have not risen above that level until the last month.

Growthdeck says that banks have become increasingly cautious on business lending in recent months as the threat of a no-deal Brexit has risen. As well as raising their interest rates on new loans, banks are also choosing to lend more to bigger businesses that they see as less risky, rather than to smaller businesses.

Growthdeck explains that the value of bank loans made to big businesses has jumped by £44.8bn (16%) since the Brexit vote in June 2016, but the amount loaned to SMEs has now fallen by £1.1bn (1%) over the same period.

Brexit is seen by banks as a major risk factor when it comes to loaning to SMEs. There are fears that a disorderly departure from the EU may trigger a sharp increase in financial difficulties for small businesses, leading banks to cut their lending to SMEs.

Gary Robins, head of business development at Growthdeck, says: “Banks have clearly been reducing their lending to small businesses.”

“Small businesses are finding it harder to borrow to grow, and where that funding is available, it’s more expensive.”

“That’s hitting small businesses twice over – it’s become much more difficult to find loans from high street banks, and where it is possible, rates are rising.”

“SMEs are vital to the UK economy but banks are starting to treat them the same way that they did in the last credit crunch.”

Growthdeck says that SME directors should be aware of alternative funding options available to them. The government’s Enterprise Investment Scheme (EIS) enables unlisted growth businesses to secure equity investments of up to £5m per year, while investors are granted tax reliefs as an incentive.

Gary Robins adds: “With bank lending in increasingly short supply for many start-ups and early stage businesses, the EIS and SEIS schemes are vital in encouraging investment to ensure that British SMEs can implement their growth plans.”

November 5, 2019

Wylie & Bisset advises SMEs to apply for Brexit Support Grant

While uncertainty about the exact timing of Brexit looks set to linger on into 2020, chartered accountant Wylie & Bisset is advising SMEs to prepare for change now by applying for a Brexit Support Grant.

Funded by the Scottish Government, the Brexit Support Grant provides a minimum of £2,000 and a maximum of £4,000 to help small to medium-sized enterprises in Scotland manage a wide range of Brexit impacts.
Applicable to SMEs based in Scotland, the grant can be used to finance an activity that would otherwise not take place without the grant and claim back costs of a project if 100% of the project costs can be financed upfront.

The grant can be used for a broad range of activity, including: Brexit impact scenario planning and various professional services specifically in relation to Brexit issues, such as legal and contractual issues, modelling cashflow, modelling the impact of changing customs/tariffs/VAT and strengthening financial and currency management.

Wylie & Bisset partner Andrew Cowling said: “Despite the uncertainty surrounding Brexit, significant change is inevitable and it is prudent to plan in advance for change. The Brexit Support Grant offers an opportunity for businesses to undertake some preparatory work towards preparing for Brexit and to receive a financial contribution towards the cost of doing so.

“Brexit will affect many businesses in many different ways so we would encourage SMEs to review the guidance collated by the Scottish and British Chambers of Commerce that cover the areas of risk and opportunity businesses may need to consider, devise a plan for Brexit, apply for funding and ascertain if they can receive a contribution towards the cost of their preparations.”

November 5, 2019

Apple Pay launched to NatWest business customers

NatWest today brings its business banking customers Apple Pay, which is transforming payments with an easy, secure and private way to pay. With Apple Pay on iPhone, Apple Watch, iPad and Mac, customers can make fast and convenient purchases in stores, in apps and on websites.

NatWest has launched the new feature across its full range of Visa debit cards to its 1 million business banking customers, complementing the existing range of payment options for SMEs.

Security and privacy are at the core of Apple Pay. When you use a debit card with Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the secure element on your device. Each transaction is authorised with a one-time unique dynamic security code.

James Holian, chief operating officer, commercial and private banking, NatWest, said: “We’re thrilled to be bringing the ease and security that Apple Pay offers to our SME customers. NatWest is committed to providing simplicity and flexibility when it comes to how our customers bank with us, and Apple Pay will allow SMEs to make safe, fast business payments with minimal effort, leaving them with more time to get on with doing what they do best – running their business.”

Apple Pay is easy to set up and users will continue to receive all the benefits offered by NatWest’s business banking debit cards – including its online and award winning mobile banking services, and free access to leading accountancy software FreeAgent.

With iPhone and Apple Watch, customers can pay with Apple Pay in stores, restaurants, taxis, vending machines and many more places. When shopping in apps or on the web in Safari with Apple Pay, there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information. Every Apple Pay purchase is authenticated with just a glance or a touch with Face ID or Touch ID, or a device’s passcode.

November 5, 2019

International Islamic Trade Finance Corporation doubles its trade finance and development efforts

The International Islamic Trade Finance Corporation (ITFC) today announced significant progress in its trade financing initiatives in the third quarter of 2019 (Q3), boosting inclusive growth and shared prosperity across OIC Member Countries with financing transactions totalling over US $2.2bn.

Major Framework Agreements were signed with Djibouti, Kyrgyzstan, Senegal, Tunisia and Uzbekistan to strengthen ties with OIC member countries and provide crucial Lines of Finance to local banks, support the development of Shariah finance and provide support for SMEs. Critical imports such as petroleum products will also be financed through these Agreements, as well as practical capacity building and business development support for approved.

Reflecting on the Corporation’s milestones, ITFC CEO, Eng. Hani Salem Sonbol said, “There is immense untapped economic potential in OIC markets. ITFC’s trade development interventions is aimed at supporting these countries’ efforts towards structural transformation and economic diversification through a diverse portfolio targeting all crucial sectors from energy to agriculture and the private sector. The signing of these new frameworks signifies our commitment to developing strategically important relationships with OIC member countries, which are a crucial step on the journey towards boosting inclusive socio-economic growth.”

Significant development milestones achieved during Q3 in Africa

Three-year Djibouti Framework Agreement
In September 2019, ITFC signed a three-year Framework Agreement with the Republic of Djibouti for US$600m to support the export of agricultural commodities and the import of energy commodities such as crude oil, refined petroleum products and agricultural inputs. The Agreement also include Lines of Financing to local banks with the objective to support SMEs; and the implementation of trade Integrated Solutions in Djibouti. These may include trade related capacity-building projects, aimed at promoting and facilitating trade, with the objective of supporting the strategic energy sector.

The Agreement incorporates a capacity building component envisaged to support Djibouti’s ambition to become an energy trading hub in East Africa by increasing domestic petroleum storage and refining capabilities.

Since 2008, ITFC has provided total financing of US$650m to the Republic of Djibouti to support the country’s energy sector.

Five-year Senegal Framework Agreement
A US$1.5bn Framework Agreement was signed in July 2019 with the Republic of Senegal to finance the import of agricultural inputs and foodstuffs; the export of key agricultural products such as groundnuts, and to support other sectors such as energy and SMEs. The provision of financing facilities to local banks and the implementation of trade development related capacity-building programs are also designed to support private exporters with the aim of promoting and facilitating trade.

ITFC has been actively supporting trade development in Senegal since its inception in 2008 with more than US$441m of financing and trade facilitation programs in favour of the West African country and its critical sectors such as agriculture and energy.

Murabaha Agreement with Tunisia
In June 2019, ITFC signed a US$136m Murabaha Agreement with the Republic of Tunisia to provide access to reliable energy to households and businesses across the country, in addition to securing the provision of crucial petroleum products. Since its inception in 2008, ITFC has approved over US$1.15bn in financing in Tunisia covering energy, steel and chemicals amongst others.

Trade Development Solutions for CIS Markets
Line of Finance in Uzbekistan via Turon Bank
ITFC signed a US$6m Line of Finance in July 2019 with Turon Bak in the Republic of Uzbekistan. The financing will support SMEs and the wider private sector, whilst indirectly contributing to export development in Uzbekistan by facilitating the importation of raw materials and machinery for export oriented and import substitution sectors. A significant number of the beneficiaries are export oriented SMEs.

It is estimated that up to 20 private sector entities (corporations and SMEs) will qualify for lines of finance through the agreement.

Mol Bulak Murabaha Agreement in Republic of Kyrgyz

Also in July 2019, a US$2m Murabaha Agreement was signed with Mol Bulak Finance (MBF) in the Republic of Kyrgyz. The Agreement will support MBF to finance the needs of the SMEs and farmers for diesel (petroleum products), seeds and fertilizers amongst others.

MBF is one of the leading financial institutions in the country focused on women’s entrepreneurship development, and as such, the facility is in line with ITFC’s mandate to drive gender-inclusive development across OIC countries.

With this Agreement, MBF will also be increasing the Bank’s Sharia compliant financing and playing a pertinent role in the development of Islamic trade finance in Kyrgyz.

Business Money magazine
Subscription options

   Sign up to our newsletter

 

 

My Newsletter

    Cart