7,500 ESFD microcredits granted in ten years

Services sector tops the list of borrowers

The Economic and Social Fund for Development (ESFD) financed 130 loans to startups and expanding businesses totaling $2.1 million during the third quarter of 2013. A total of 7,579 loans were granted since the ESFD began activities in 2003, amounting to $79 million and creating 5,174 jobs.

The ESFD is the result of a partnership between the European Union (EU) and the government, represented by the Council for Development and Reconstruction (CDR). It is currently self-financed, and also offers consultancy services to clients.

The number of loans to the services sector was the highest since the ESFD was established. It was followed by the trade, industry, and agriculture sectors. “This is a reflection of the market’s segmentation in the local economy,” said Racha Chahine, Job Creation Manager at the EFSD.

The Mount Lebanon and Nabatieh governorates received the largest number of loans, followed by the North, Bekaa, and South. Loans for enterprises in Beirut came in last place. “We have seen an increase in the number of ESFD loans in the Bekaa and North because banks are becoming more risk sensitive and cautious in the number and purpose of loans they give.”