IFC and National Bank of Samoa to Boost SME Finance to Support Entrepreneurs and Create Jobs

Under an agreement announced last week, the International Finance Corporation (IFC) will invest up to $4 million equivalent in Samoan Tala in National Bank of Samoa (nbs) as part of efforts to boost access to finance for small and medium enterprises (SMEs). The investment, in the form of an eight-year unfunded risk-sharing facility (RSF), underscores a commitment on the part of IFC and nbs to support a sector vital to the Samoan economy, and in particular women-led businesses and SMEs focused on agriculture.

The RSF is expected to foster financial inclusion and help create thousands of jobs. IFC and nbs each will cover up to 50 percent of the principal losses in an up to $8 million equivalent in Samoan Tala portfolio of SME loans to be originated by nbs. IFC, a member of the World Bank Group, also sees this investment as marking an important milestone in its ongoing commitment to supporting Pacific Islands nations in their recovery from the economic impacts of the COVID-19 pandemic.