WASHINGTON, D.C., March 1 -- The International Finance Corporation (IFC) is to provide a US$70 million long-term credit line to six leasing companies in Pakistan. The credit line will finance the leasing of equipment to small and medium-scale enterprises in the agribusiness, services, construction, transportation, and textile sectors. "These lines of credit will alleviate a major constraint on the growth of small and medium-sized enterprises, which constitute the bulk of the productive private sector in Pakistan," said Andre Hovaguimian, IFC Director for Central Asia, Middle East, and North Africa. The IFC credit facility will consist of a US$55 million loan for IFC's own account, and an additional US$15 million loan to be syndicated with international financial institutions. The borrowing leasing companies -- National Development Leasing Corporation Limited, Orix Leasing Pakistan Limited, Pakistan Industrial Leasing Corporation Limited, Atlas BOT Lease Company Limited, Pakistan Industrial and Commercial Leas
ing Limited, and First Leasing Corporation Limited -- are leading players in the leasing sector in Pakistan. "This credit facility is IFC's first comprehensive credit operation in Pakistan's lease finance sector and fulfills the funding needs of the six leasing companies. In addition, the operation will provide several of the borrowing companies with access to the international financial markets on purely commercial terms," said Khalid Mirza, IFC's Division Manager responsible for capital markets activities in Pakistan. "This will be an important contribution to the development of Pakistan's financial sector." IFC, a member of the World Bank Group, is the largest multilateral source of direct financing for private projects in developing countries.
