Bahrain labour fund Tamkeen said it has sealed an agreement with Bahrain Islamic Bank (BiSB) under which it will add BD10 million ($26.5 million) to its enterprise financing scheme.

The finance scheme is being offered by Tamkeen in partnership with leading financial institutions of Bahrain.

The additional funds will raise the total value of the scheme’s financing portfolio to BD169.5 million, said a statement from Tamkeen.

The signing ceremony was held at Tamkeen’s offices in the presence of Tamkeen chief executive Mahmood Hashem Al-Kooheji and BiSB chief executive officer Mohammed Ibrahim Mohammed beseides other company officials.

The agreement is part of Tamkeen's effort to provide the necessary financial support for private sector enterprises to grow, prosper, and contribute to the national economy.

As per the scheme, Tamkeen subsidises 50 per cent of the total finance by paying 50 per cent of the annual profit of the finance amount, which ranges between BD5,000 up to BD500,000 repaid over a period of up to 10 years, with a grace period of between one month and two years, at the discretion of the bank.

As of end of December 2011, more than 3,000 enterprises have benefited from the Enterprise Financing Scheme with a total financing amount reaching BD109 million.

Commenting on the agreement, Al-Kooheji said the scheme bridges the financing gap that often hinders the growth of private sector companies, especially small and intermediate enterprises.

'Based on thorough studies to assess the market’s funding needs, Tamkeen designed an integrated and comprehensive package of funding options with simple terms conditions  to ensure they are within the reach of all enterprises, regardless of their size or business activity,' he explained.

Mohammed said BisB was pleased to continue its partnership with Tamkeen to offer financing to enterprise within the Kingdom.

'This latest signing adds another BD 10 million to the previous BD10 million agreement signed with Tamkeen in 2010, and confirms our ongoing commitment to support Bahrain’s private sector enterprises and bolstering national economic development,' he stated.
 
“We are steadfast in our dedication to the nation’s enterprises, as we consider it a national duty and something we take great pride in, especially as it directly furthers the development of hundreds of Bahrainis working in this sector and fuels job creation. We look forward to continue strengthening our partnership with Tamkeen to positively influence our community,” he added.-TradeArabia News Service