Financial Times

IFC supports tsunami-affected firms with $150 M loan
Washington, D.C. - The International Finance Corporation, the World Bank Group’s private sector financing arm, last week said it was providing up to $150 million as loans to companies that can help rebuild commercial tourism ventures in tsunami-affected countries in South Asia and South East Asia.

An IFC spokesperson said, "IFC will clear loan requests on a priority basis and provide long-term funding to help hotel and resort operators rebuild properties that were affected by the tsunami well in time for the next peak tourist season. This is a good opportunity for companies in the region who would like to receive accelerated long-term loan financing to help rebuild hotel properties in the affected areas in the Maldives, Sri Lanka, and Thailand, where the tsunami caused significant damage to popular tourist resorts."

According to an IFC statement, the loans will be granted on commercial terms and are aimed at established hotel companies that require substantial amounts of capital for reconstruction or refinancing.

Typically, the firms should be committed to sound social and environmental policies, with a positive track record in operations and a portfolio of properties catering to different segments of the market. Prospective clients can expect to receive funds within eight weeks of applying for a loan.

"We are pleased that discussions are well advanced with some companies, but we are still inviting others to come forward," said Sanjiva Senanayake, IFC resident representative for Sri Lanka and the Maldives. He added, "The facility will have a strong economic impact on the affected areas, where tourism is an important industry and will help preserve and create jobs in tourism and related sectors. It will also promote the adoption of better environmental and insurance practices."

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