India: Small and Medium Enterprise Financing and Development Project

WASHINGTON, November 30, 2004,  - The following projects were approved today by the World Bank’s Board:

LOAN AMOUNT: US$120 million

TERMS: Grace period =  5 years; Maturity = 15 years

PROJECT DESCRIPTION: This project is aimed at improving small and medium enterprise (SME) access to finance and business development services, thereby fostering SME growth, competitiveness and employment creation. This will be achieved through a multi-pronged approach that will address key constraints to SME financing and development by focusing on the creation of a more enabling policy/regulatory and institutional framework for SME financing; helping banks gain better access to longer term financing for lending to the sector; mitigating banks’ risks related to lending and reducing transactions costs; and strengthening business development services and market linkage programs for SMEs.  For more information, please call Karina Manasseh at (202) 473-1729 , or email: kmanasseh@worldbank.org  For More Information on the World Bank’s Activities in India, Visit:

http://www.worldbank.org/in.