EBRD supports Egypt’s real economy through loan to CIB
The European Bank for Reconstruction and Development (EBRD) is reinforcing its support for the Egyptian economy with $100 million loan to Commercial International Bank (CIB), a longstanding partner bank of the EBRD.
The financing is part of the EBRD’s response to help mitigate the impact of the coronavirus pandemic through its partner banks. This credit line will help CIB provide short-term loans to private small and medium-sized enterprises and corporations facing liquidity strains due to a decrease in their activities and turnover caused by the crisis.
Jurgen Rigterink, EBRD First Vice President, said: “It is crucial to support the real economy during these unprecedented times with the provision of funds through well-functioning channels. Ensuring a continuous flow of financing to local enterprises will help overcome this crisis and ensure the recovery of businesses and the country.”
Hussein Abaza, CEO of CIB, said: “We are very happy to see this agreement through. In these unprecedented times, strong relationships that span years are bearing fruit, for example in the mutual trust and understanding between CIB and the EBRD. This facility is a testament to CIB’s strength as a financial institution and reinforces our leading position and sound credit judgement. We all look forward to coming out of this period even stronger.”
In response to the coronavirus pandemic, the EBRD now expects to dedicate the entirety of its activities in 2020-21 to combating the economic impact of the crisis and stands ready to provide support worth €21 billion over that period to help the 38 emerging economies where it invests.
CIB is the third-largest bank in Egypt. It has been a partner of the EBRD since 2014 through the extension of a trade finance facility, which was followed by a subordinated loan in 2017.
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.