The Social Fund for Development has officially launched the loan guarantee program in March under the slogan “Together for a Better Yemen”.
The key motive behind launching the LGF is to provide entrepreneurs with the necessary guarantees required from banks and MFIs in order to obtain loans.
The program, which was inaugurated by the Managing Director of the Social Fund for Development, Abdullah Al Dailami and Head of SMEs Unit Osama Al Shami, is dedicated to increase the banking sector ability to provide financial services for more SMEs, ensuring resilient and growing microfinance projects and to create additional jobs and support the recovery of the economic activity in Yemen.
It is important to know that up to 60% of small and microfinance business owners cannot provide loan guarantees, therefore, LGP would actively help in tackling this challenge.
