Letters of credit (L/C) appear to have helped the Rwanda Development Bank's (RDB's) new trade finance facility take off this year.

The bank says that financings under the facility have already hit 2 billion Rwandan Francs (Rwf 2 billion).

International scope

The bank says that hitting the Rwf2 billion mark indicates that the Rwandan business community is increasingly looking to cross-border trading opportunities.

The trade finance facility, which was only launched last March, provides financial support to businesses involved in international trade.

The facility features import L/Cs as well as medium and long-term loans.

Poverty reduction

According to an official at RDB, the bank is now looking to launch a Rwf 2.5 billion Small- and Medium-sized Enterprise (SME) Fund to encourage commercial banks to lend more support to Rwandan SMEs.

The bank, in which the Rwandan government has the largest share of 38.8 per cent, aims to eradicate poverty, especially in rural areas through investment in agriculture and other projects.

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