General conditions

The main conditions for obtaining the Bank’s financial backing are as follows:

1. A feasibility study for the project (technical and financial).
2. Adequate technical capacities in the field of the project for which finance is being sought,
3. Capacity to manage the project,
4. Adequate market share to ensure a good turnover level, and project profitability
5. A minimum participation by the promoter varying between 30 and 50% of the cost of investment according to the size of the project. For expansion projects, the contribution of the Bank can represent the totality of the necessary investment.

Guaranties

The Bank must get adequate guarantees for the loans it gives out. These are usually in the form of:

1. Mortgages with title deeds,
2. A pledge of receivables,
3. The joint guaranty of spouse, associates, other partners…
4. A guarantee from the Government, a guarantee fund, a bank, other partners, foreign organisations, etc...
5. The pledge of material or financial resources, …
6. Accidents and fire insurance, etc.

Financial condition

Interest rate The interest rate is negotiable between the Bank and the customer and takes into account the cost of resources used for the financing, the collateral security offered, the risk of the investment, the credibility of the investor and the economic and the social impact of the project. .

Repayment period

The repayment varies and can be up to 10 years depending on the cash-flow projected for the project. At present, the average repayment period is between 7 and 8 years, which makes the B.R.D. the country’s sole financing institution, specialized in long term financing.