Djibouti: Shoura Bank Inaugurated

(HornTrade) – The new premises of the Shoura Bank was inaugurated today, the 20th of  June 2010.

The Shoura Bank, which is a new Islamic financial institution, belongs to the holding Egyptian Shoura. It occurs particularly in the areas of trade, agriculture, industry, real estate, tourism and the medical field.

The doors open Shoura Djibouti Bank is part of the national authorities’ policy of more open banking market to different segments of the population of Djibouti.

As stated by the Governor of the Central Bank of Djibouti, “the installation of the new bank, the ninth in our financial landscape, is a major event in an international context marked by gloom in financial markets and uncertainty.”

Concerning the limited access of small business to bank financing in Djibouti, M Djama Mahamoud Haid said that the main constraints on access to finance for small business is the high level of guarantees required by banks and the absence even lack of reliability of financial statements by companies. high interest rates and short maturity of loans (70% of total loans are short term) also penalize access to finance for small business.

However, to mitigate these constraints and encourage many banks in small business lending, the Djibouti authorities have set up a guarantee fund of funds which should according to the Governor, “to grant bank loans, in particular medium and long term, companies with a viable economic project, but with no collateral required.

The CEO of the Egyptian Shura Sheikh Hamid Ahmed Al Shiyati for his part, said that “it is the climate of security, democracy and economic growth that has made Djibouti a regional financial center.”

He has also expressed the group’s intention to invest Shoura soon to Djibouti in a project of a cement plant with a capacity of producing 1.25 million tons per year.

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