AfDB approves financial package for PTA Bank

Accra, March 14, GNA - The African Development Bank (AfDB) has approved a financial package for the Eastern and Southern African and Development Bank, known as the Preferential Trade Area (PTA) to strengthen its capacity and operations in the Sub-Region.

A statement by AfDB in Accra on Friday said the package comprised a line credit of 50 million dollars, an equity capital of 6.8 million dollars (payable) and 40.8 million dollars as (callable) capital.

The PTA Bank is a development finance institution with the objective to provide development financial services to clients in member states in areas of trade, technical assistance and projects financing. In addition, a one million grant for institutional capacity building of PTA Bank was being provided by the AfDB-managed Fund for African Private Sector Assistance (FAPA), a trust fund established by contributions from the Japanese Government.

The statement said the financial support would be directed towards high impact projects that boost employment, foreign exchange earnings, technology transfer and the acquisition of technical skills. "The project is consistent with AfDB's updated private sector operations strategy with emphasises on small and medium scale enterprises development, using financial intermediaries as development partners".

It is also in line with the Bank's group Policy on regional and economic cooperation with the New Partnership for African Development (NEPAD) objectives for regional integration and support to the private sector," the statement added. The support was the AfDB's fourth intervention since 1991, comprising two equity capital participation, three lines of credit and two technical assistance grants. 14 March 08