Credit Line

July 7, 2010 (LBO) - Sri Lanka's Lanka Orix Leasing Company will expand credit to war torn northern and eastern areas of the country armed with a credit line from the French government, officials said.
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PROPARCO, the private sector funding arm of the French foreign aid agency gave a 10 million euro credit line to LOLC Tuesday.
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French ambassador to Colombo Christine Robichon said France had earlier worked with LOLC give credit to small entrepreneurs who were hit by a tsunami in 2004 in the south of the country, in Matara, Kalutara and Galle.

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"This is the kind of impact France wants to have in the north and east," Robichon said.

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"They are not strong enough to get credit from banks. With this credit they can develop.
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Leasing does not require additional collateral to borrow, other than the asset leased, such as a vehicle or agricultural equipment.

LOLC group chief Kapila Jayawardena says entrepreneurs in the north and the east are now re-building their lives and looking for credit.

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LOLC is Sri Lanka's first leasing firm set up under a World Bank initiative 30 years ago.

"About 80 percent of our credit is given in rural areas," Jayawardena said.

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"About one and a half years ago abou
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