MEGA BANK Nepal + SMEs + Securitization of Remittances

• Mega Bank, a class A commercial bank in Nepal announced last month that it is going to observe 'SME Bank Year' this current fiscal year. According to the CEO of the Bank - they plan to lend Rs 2.5 billion to SMEs by the end of this fiscal year............ 
  In an interview the CEO of  the bank said - "Remittance — the country’s economic lifeline — should be linked to SMEs"  .. Mobilizing remittances into SMEs will support sustainble economic growth of the country  
  

  
  

  So  here is an idea on how to link SMEs to Remittances ...............we can learn that from Sri Lanka 

  
  
  • "   IFC is using  unique model to help Sri Lanka's Commercial Bank of Ceylon mobilize long-term financing through the securitization of remittances and export proceeds it receives to boost the bank’s SME portfolio.......Worker remittances are systematically important for Commercial Bank.......    Under the terms of IFC’s latest financing of the bank for $65 million, future foreign receipts received by the bank from migrant worker clients will be securitized offshore, enabling Commercial Bank to obtain longer-term funding at a competitive price to boost its SME portfolio."    click here to read more