The fund will support businesses through loan restructuring for the tourism sector specifically hotels, providing working capital for businesses most affected by COVID-19 to keep them operational and avoid lay-offs as well as loan guarantee for SMEs and Micro-businesses.
The fund will be disbursed to hotels owners at 5 per cent interest rate compared to the current market rates of about 16 per cent.
For the support to other affected sectors, banks will lend to clients at 8 per cent interest rate with a grace period of up to 12 months and a repayment period of 5 years.
The support also includes Business Development Fund partial guarantee of up to 0.25 per cent to Small and Medium Enterprises and Micro businesses.
The rollout of the fund will be coordinated and monitored by the Economic Recovery Fund Steering Committee comprised of officials from the Ministries of Finance and Trade, Central Bank, Rwanda Development Board, Private Sector Federation and Rwanda Bankers' Association.
