How the U.S put hard money into Botswanas diamond dream :: Mmegi Online

History was made on Monday morning at a breakfast signing ceremony in Botswana. Barclays Bank of Botswana signed a $125-million credit guaranty agreement with the Overseas Private Investment Corporation (OPIC), through which the United States government will share 75% of the credit risk in financing diamond beneficiation in Botswana.

Barclays is taking a first tranche out of a total available guarantee of $250 million. Together with the $83-million matching banking partner share, this guarantees an availability of $333 million of credit for Botswana’s manufacturers – only for manufacturing – which is well above the industry’s foreseeable requirements. Eventually, it is expected, other banks in Botswana will join the programme, providing a new rationale to diamond manufacturing in the country. Botswana’s main attraction will be credit – not just rough diamonds! Diamond Intelligence Briefs made the following report available to BusinessWeek

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