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Small and Medium Enterprises (SMEs) are set to benefit from a US$10million credit facility agreement between Soci�t� G�n�rale Ghana Limited (previously SG-SSB) and Proparco, a subsidiary of the Agence Fran�aise de D�veloppement. At a short ceremony in Accra, Managing Director of Soci�t� G�n�rale Ghana Limited, Gilbert Hie, said the growth of the Ghanaian economy in recent years has increased the demand for long-term funding. �There is a lack of funds for CAPEX (capital expenditure) investments and infrastructure funding. This seven-year loan agreement with Proparco will allow the bank to meet the growing need for long-term resources by our clients,� he said. �This project, which stands in line with a particular engagement of Proparco in the Ghanaian banking sector, will foster long-term investments in the country. It will, more globally, support the development of small and medium enterprises -- which are sources of employment and levers of growth,� he added. Chief Executive Officer of Proparco, Claude P�riou said the banking sector of Ghana is showing good fundamentals and encouraging prospects. �In the last 10 years, Ghana has made substantial progress in developing and improving the stability of its banking system.� He added that new regulations and guidelines have notably made the sector more efficient, innovative, and profitable. �The recent round of successful capital increase has further strengthened Ghanaian banks. With an improved business environment and a dynamic private sector, the need for long-term financing is substantial. �Proparco is very happy to renew its cooperation with Soci�t� G�n�rale Ghana. This credit facility will increase the availability of long-term financial resources in the country and will enhance the financial depth of the banking sector.� French Ambassador Fr�d�ric Clavier said the agreement is a result of the recent visit by President John Dramani Mahama to France and is a new proof of France�s commitment to help the growth of the Ghanaian economy. �We all know how access to credit is key to economic development by fostering capital expenditures in companies. Through this financing, Proparco will provide long-term financial resources that can be on-lent to private companies in order to address this issue. �Moreover, due to the fact that this financing is in foreign currency, the interest rate should be lower than what the local market can make available.� Proparco catalyses private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals. Since 1990, Proparco has invested �230million in Ghana. Last year, it invested about US$250million in the sub-region, out of which Ghana benefitted from about US$50million. Next year it plans to invest between US$20million and US$50million. Ghana is the second-highest beneficiary of Proparco facilities -- right on the heels of neighbouring Ivory Coast, which incidentally houses the institution�s head-office. Other banks and institutions that have benefitted from Proparco�s facilities include CAL, Fidelity, HFC and Ghana Home Loans.