(Ecofin Agency) - The government of Niger has initiated a financing mechanism to give a helping hand to businesses affected by the coronavirus pandemic. According to authorities, the strategy is based on two lines: one for SMEs (CFA50 billion) and the second for large companies (CFA100 billion), for a total amount of CFA150 billion ($249.6 million).

“The government will make available to banks CFA25 billion in the form of a non-interest-bearing cash deposit guarantee for SMEs. In return, the banks undertake to inject CFA50 billion in the form of credit in favor of SMEs with annual turnover between CFA25 million and CFA1 billion,” according to an official statement.

For large enterprises, CFA25 billion will also be placed by the State with the banks in the form of a non-interest-bearing deposit to serve as a guarantee. The banks for their part undertake, this time, to grant CFA100 billion in credit to large companies whose annual turnover is higher than one billion CFA.

According to the government, a framework agreement will be signed between the state and the Association of Professionals of Banks and Financial Institutions of Niger (APBEF-N), within this framework.