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Urban services for all : fair sharing of financial efforts

In many countries, small and medium drinking water companies have difficulty accessing local financial markets. Bankers have a certain risk aversion and are reticent to give these companies long term loans for sums that are considered too low, for business that is reputed to have low profi ts.In Cambodia, a programme funded by the European Union and the Agence française de développement is attempting to remove these obstacles: by making several financial instruments available for a Cambodian bank, including a credit line and a portfolio guarantee, it succeeded in persuading the bank to grant companies subsidized loans over periods ranging from 5 to 10 years. This system is complemented by technical assistance to the bank and the businesses in order to reduce technico-fi nancial risks associated with investment projects. GRET is coordinating this programme and supporting businesses with their funding requests and company management (CBRS project)

 


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