Euro Credit

Apr.07 (LBO) – The European Investment Bank Friday extended a 70 million euro special credit line to Sri Lanka, to help rebuild small and med-sized industries affected by the December tsunami. Tailor made for Sri Lanka, the credit line can finance up to 75 percent of the cost of individual projects, with borrowers given five-years to repay the debt.

The loan covers all nine districts hit by the 2004 tsunami, and looks to assist projects related to infrastructure, tourism, energy and telecommunications related sectors, Julian Wilson, Head of Delegation, European Commission Sri Lanka and Maldives told reporters here.

Of this credit line, between 20-25 million euros have been allocated to Sri Lanka’s Central Bank for their ongoing subsidized tsunami loan scheme, while the balance will help shore up small and mid-sized enterprises hit by the disaster.

“Businesses outside tsunami areas, but whose turnover was affected by the disaster, also qualify under this special tsunami loan,” Wilson said.

“The challenge is to re-establish the local economy, maintain employment and create new job opportunities,” said Jean Louis Biancarelli, of the European Investment Bank.

About 31,000