EBRD, NBKE partner to support local businesses in Egypt
08-06-2020 09:58:00 | by: Pie Kamau | hits: 2179 | Tags:

The European Bank for Reconstruction and Development (EBRD) is providing loans for up to US$ 100 million to National Bank of Kuwait Egypt (NBKE) for on-lending to private businesses in Egypt to address the economic impact of the coronavirus pandemic.

The loan is the second in the country under the EBRD’s coronavirus Solidarity Package, established to meet the immediate short-term financing needs of existing clients. NBKE will provide loans to firms with a special focus on small and medium-sized enterprises (SMEs) that are experiencing a decrease in their activities and turnover. Small businesses form an important segment of the Egyptian economy and supporting them in these challenging times remains a priority for the EBRD.

NBKE is an Egyptian joint stock company, and a subsidiary of the NBK group. It has been a partner of the EBRD since 2015, when an SMEs loan and a trade finance facility were signed, followed by an energy efficiency loan in 2016 under EgyptGEFF. The coronavirus pandemic and its economic impact present an unprecedented challenge to the regions where the EBRD invests. The Bank has rapidly stepped up its support with a response and recovery programme to help the 38 emerging economies where it invests.

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 2020-21. Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested close to €6.5 billion in 115 projects in the country.