The French Development Agency and Bank Audi sal – Audi Saradar Group announced the signature, on June 27, of a 25 million Euro financing agreement, at the AFD’s headquarters in Paris. This line of credit is part of a 125 million Euro program approved by the Agency’s Board of Directors last January, and intended to support the activity of Lebanese small and medium enterprises affected by the July 2006 war and its economic consequences. It is worth noting that the AFD had already ratified similar conventions during the year, notably during the international donors’ conference for Lebanon. This agreement comes within the Lebanese government’s assistance plan to the private sector, supported also by other donors. Amounts of loans to SMEs will vary from a minimum of USD 100,000 to a maximum of USD 1.5 million, over a period ranging between 12 months and 10 years. Granted at preferential conditions, the AFD’s line of credit will allow SMEs to benefit from lower interest rates. This financing will contribute to the reconstruction and rehabilitation of buildings, as well as to the replacement of stocks and equipment, and the reinforcement of the enterprises’ working capital, allowing them to catch up with their previous level of activity while preserving jobs.

Background on the French Development Agency 
The French Development Agency is a financial institution that is at the heart of France’s development assistance policy towards poor countries. It intervenes in the five continents, working to reduce poverty, finance economic growth and protect global public goods. Its actions fall within the framework of the Millennium Development Goals (MDGs).

Background on Bank Audi sal – Audi Saradar Group 
Bank Audi is a dynamic financial group including 74 branches in Lebanon and offering commercial, investment, private and retail banking services. In January 2006, Bank Audi announced an unprecedented USD 600 million capital increase, raising its shareholders’ equity to US$ 1.7 billion, intended to cater for its regional expansion. The Bank is present in Lebanon, Switzerland, France, Jordan, Syria, Egypt, Saudi Arabia, Sudan, Qatar and Abu Dhabi (representative office), with plausible expansion perspectives in North Africa before year-end.