EBRD fosters private businesses in Egypt
The European Bank for Reconstruction and Development (EBRD) is supporting the real economy in Egypt with a $200 million financing package to Banque Misr for trade and for on-lending to small and medium-sized enterprises (SMEs) and private businesses, a key segment of the local economy - impacted by the coronavirus pandemic.
Under this facility, the EBRD will provide a $100 million loan to enable Banque Misr to provide short-term financing to private SMEs and corporates facing liquidity strains due to a decrease in their activities and turnover caused by Covid-19.
In addition, the Bank is increasing an existing trade finance limit to Banque Misr by $100 million under the EBRD’s Trade Facilitation Programme (TFP), in order to help meet the increased demand for import and export transactions.
This financing package is under the EBRD’s coronavirus Solidarity Package, established to meet immediate short-term financing needs to private businesses through existing EBRD partner banks. The EBRD expects to dedicate the entirety of its activities to combating the economic impact of the crisis and stands ready to provide support worth €21 billion over the 2020-21 period, in order to help the 38 emerging economies where it invests.
Banque Misr was established in 1920 and is the second-largest bank in Egypt with total assets of €54.1 billion, as of December 2019. It has been a partner of the EBRD since 2017, when a first small business loan was signed followed by a trade finance facility in 2018.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the EBRD has invested close to €7 billion in 120 projects in the country.