Kafalat
Kafalat is a Lebanese financial company with a public concern that helps small and medium sized ventures (SMEs) to access commercial bank funding. Kafalat helps SMEs by providing loan guarantees based on business plans / feasibility studies that show the viability of the proposed business activity. It processes guarantee applications for loans that are to be given by Lebanese banks to SMEs operating throughout Lebanon. Kafalat targets SMEs that belong to one of the following economic sectors: Industry Agriculture Tourism Traditional Crafts High Technology Kafalat guaranteed loans benefit from interest rate subsidies. These subsidies have been set up to alleviate the crowding out effect of the high interest rates in Lebanon which are generated by public sector borrowing. The interest rate subsidies are financed by the Lebanese treasury and administered by the Central Bank of Lebanon.
