ACCESS TO FINANCE

STEERING COMMITTEE MEETING

07 DEC 2017
 03/
IMPROVING
ACCESS TO FINANCE
Credit Guarantee Fund
 REACTIVATING THE CREDIT GUARANTEE FUND:
OBJECTIVES
Support SMEs accessing finance
Motivate banks to offer finance through minimising the risk
Improve the overall Libyan Credit Guarantee Fund operations
through the implementation of:
A new structure
New processes
New operational features
Deliver guarantee in a new and efficient format
Improve the financial sector risk assessment tools
Provide capacity building programmes for both the Fund and the
banks in Libya
 REACTIVATING THE CREDIT GUARANTEE FUND:
KEY ACHIEVEMENTS FIRST PHASE 2017

A comprehensive assessment and evaluation of the financial and

private sector has been carried out in cooperation with BPI France
A potential need for a credit guarantee fund was identified
A Credit Guarantee Fund exists in Libya but needs to be reformed
The guarantee fund prefiguration has been designed in accordance
with the international standards
A five years business plan has been developed for the fund
A working plan has been built to renew the National Guarantee
Fund so as to implement the perspective of the strategic plan
 REACTIVATING THE CREDIT GUARANTEE FUND:
KEY ACHIEVEMENTS SECOND PHASE 2017
Launched a pilot phase in cooperation between the National
Guarantee Fund and five Libyan banks
More than 10 workshops were conducted with the NGF and the
majority of the Libyan institutions
A preapproval on the way forward was received from major Libyan
authorities during the 04/08 workshop and 04/10
The MoU signed with 5 banks:
 REACTIVATING THE CREDIT GUARANTEE FUND:
CALENDAR 2018
Presentation of the First guarantee
action plan Transition plan delivery
1/18 4/18
Donor agreement
2/18
22/11/2017 Banks agreement
Sign decree 3/18
2/18

2017 Q4 Q1 Q2 Q3 Q4 2018
Liquidity
1/11/17 - 31/1/18
management
Legal and
1/11/17 - 28/2/18
regulatory
Organization 1/12/17 -
al Change 31/12/18
New
1/11/17 -
operational
31/12/18
features
1/1/18 -
Training 30/6/18
Credit Mediation
 CREDIT MEDIATION:
OBJECTIVES
For the entrepreneurs
Facilitate the access to finance
Find the best solution to survive to its difficulties
Offer a more realistic view on its indebtedness capacity
For the banks
Build a more efficient communication system with the clients
Develop and improve the SMEs risk evaluation skills
For the government
Support to achieve strategic targets for development and diversification
Give an access to credit opportunity to highly valuable projects for the country
development
Contribute to the growth of the private sector
 CREDIT MEDIATION:
KEY ACHIEVEMENTS - 2017

Pre-approval from different Libyan authorities

The status of credit mediation has been prepared
A feasibility study has been carried out
A concept note was presented and accepted during the 04/08 and
04/10 workshops
A study tour in the French credit mediator has been conducted
A proposal decree has been structured and sent to the Ministry of
Economy, Ministry of Planning, Ministry of Finance and the Central
Bank of Libya
 CREDIT MEDIATION:
CALENDAR 2018

As soon as the GNA approves the proposed decree:

Support will be offered to:

Build the structure of the CM
Support Identifying a political figure with a strong
endorsement of the government
A comprehensive study tour will be organized in the French Credit
Mediator
A tailor made training programme for the staff of the Libyan Credit
Mediation
Full support will be offered to effectively implement the Credit
Mediation in Libya
 Micro-Finance
Microfinance, is a financial service that is provided to
unemployed or low-income individuals or groups who
otherwise have no other access to financial services.
 MICROFINANCE:
OBJECTIVES
Distribute micro products through an institution operating locally in
Libya
Provide financial services to the poor who have little or no access to
commercial bank services
Provide financial services at lower to almost non collateral
requirements
Support entrepreneurship growth
Improve standards of living
support formal sector growth
Provide both financial and non financial services
 MICROFINANCE:
KEY ACHIEVEMENTS - 2017
A comprehensive feasibility study was carried in cooperation with Adie France
A three years action plan was developed
The institution will be Shariah compliant
The product could be distributed through two operating models:
An NGO (on non-profit basis, while covering all costs associated)
A private institution (for profit basis)
A preapproval from the Libyan NGO Commission, CBL and different Libyan
authorities during 04/08 and 10/08 workshops
Different regional institutions were approached to assist in establishing and
running the institution
 MICROFINANCE:
CALENDAR 2018

Identify a source/sources of funds

Choose the operating model that is compatible with the sources of
fund
Support the institution in obtaining the required licenses
Provide a comprehensive technical assistance through a regional
and specialized MFI in all operating aspects
Run tailored made training programme for the institutions staff