The Credit Facility however gives loans through Designated Financial Institutions (DFIs) appointed by the EDIF Board to participate in the EDIF scheme to individual/corporate exporters, producers of export goods (manufactured items/agricultural produce) developers of infrastructural projects to provide services to exporters. To benefit from the fund companies and enterprises must be wholly Ghanaian owned or have majority Ghanaian shareholding. An applicant must obtain the prescribed application form from a Designated Financial Institution through which the facility if approved is disbursed. The DFI bears the credit risk for loans disbursed to applicants through its bank.
DESIGNATED FINANCIAL INSTITUTIONS (DFIs)
The Board of EDIF designates in writing financial institutions through which loans are granted to exporters and producers of export goods.
EDIF works in partnership with Designated Financial Institutions (DFIs). The Board appoints the DFIs on the recommendation of the Bank of Ghana. In this regard a financial institution is defined as an institution incorporated under the laws of Ghana and recognized by Bank of Ghana as carrying on the business of banking or providing credit to exporters.
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On the current list of DFIs are:
• Agricultural Development Bank
• CAL Bank
• Ecobank Ghana Limited
• First Atlantic Merchant Bank
• Ghana Commercial Bank
• International Commercial Bank
• National Investment Bank
• Prudential Bank Limited
• SSB Bank Limited
• Stanbic Bank Ghana Limited
• The Trust Bank
• Export Finance Company Limited
• Empretec Ghana Foundation
• Barclays Bank of Ghana Limited
• Amalgamated Bank Limited
• Merchant Bank Limited
• Standard Chartered Bank Ghana Limited
In accordance with EDIF's operational procedure, all loans are granted through the DFI's, which are also responsible for recovery as they bear full credit risk for loans granted through them.
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Eligible Applicants
Individuals, enterprises or companies which are eligible to access the Credit Facility for loans are:
• Export Marketers,
• Producers and Exporters
• Producers of Export goods (manufactured items/agricultural produce); and
• Investors undertaking infrastructural projects to provide services to exporters.
To benefit from the Fund, companies or enterprises must be wholly Ghanaian owned or partly owned but with Ghanaian majority shareholding.
Both existing and new businesses qualify for EDIF assistance.
Submission, Evaluation and Approval of Application
An applicant seeking credit facility from EDIF must obtain a prescribed application form in triplicate from a Designated Financial Institution of his/her choice. One completed application form should be submitted to the DFI where the form was obtained, one lodged with EDIF and one retained by the Applicant.
The DFI will evaluate, appraise and give provisional approval to an application and submit its report and recommendations to EDIF. After review final approval or otherwise shall be granted by EDIF.
A decision on an application is made within a period of thirty seven (37) days from receipt of the application by EDIF in compliance with the law establishing the Fund.
For successful applications EDIF shall lend the specified amounts to the DFIs who shall on-lend same to the beneficiaries. Designated Financial Institutions bear the full credit risk for loans granted.
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REPAYMENT PERIOD
• Short term facility for a period not exceeding twelve months;
• Medium term facility for a period not exceeding five years;
• Long term facility for a period exceeding five years.
INTEREST RATE
A major attraction of the EDIF facility is the low interest rate on its loans. This is to enhance the competitiveness of the country's goods on the export market.
SECURITY
For small and micro enterprises landed property and other collaterals like cash, equity, treasury bills and other securities may be de-emphasised. Rather emphasis is given to non-traditional collaterals including personal guarantee.
Click here to view EDIF's Approved Loans Classified by Sectors (Jun. 2002 - Jul. 2005)
