afrol News, 3 January - The Mauritanian bank, La Générale de Banque de Mauritanie (GBM), today signed a line of credit of US $10 million. This will enable the country's leading bank to finance private enterprises and projects within Mauritania.
The African Development Bank (ADB) today announced from the Mauritanian capital Nouakchott that it had signed a US$ 10 million line of credit with Mohamed Ould Bouamatou, Managing Director of GBM.
- The line of credit aims to provide GBM with medium-term resources to finance economically viable and environmentally friendly projects mainly in the industry and services sectors, according to an ADB release.
It was to be used to procure goods, equipment and supplies needed to establish, modernise, expand and renovate enterprises with a high growth potential, the bank noted.
According to ADB, this line of credit "will contribute to poverty alleviation in Mauritania through the financing of projects that will create about 600 jobs." The African bank officially bases all its grants and credits in poverty alleviation.
Moreover, the ADB's investment was to help GBM strengthen the capacity for financial intermediation and access adequate resources for medium-term financing. Although ADB had started its operations in Mauritania back in 1974, the present line of credit is the first investment of the Bank’s private sector window in Mauritania.
GBM (or Générale de Banque de Mauritanie pour l'investissement et le Commerce) is Mauritania's leading investment and merchant bank, mainly giving financial services to private sector development.
The Mauritanian banking sector, although initially weak, has recently been popped up by significant government savings. The poor West African nation receives more foreign aid than the government is able to spend, according to a recent IMF assessment.