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$ 300m EBRD loans to NBE, CIB to back Egyptian economy
The European Bank for Reconstruction and Development (EBRD) allocated $ 300 million loans the National Bank of Egypt (NBE) and the Commercial International Bank (CIB) for supporting the Egyptian economy in the aftermath of the coronavirus crisis.
The EBRD earmarked a $ 200 million financing package to National Bank of Egypt (NBE) for trade and for on-lending to local companies impacted by the coronavirus pandemic.
Under this facility, the EBRD will provide a $ 100 million loan to help NBE provide short-term loans to private small and medium-sized enterprises (SMEs) and firms facing liquidity strains due to a decrease in their activities and turnover caused by the crisis.
In addition, the EBRD is increasing an existing uncommitted trade finance limit for NBE by $ 100 million under the EBRD’s Trade Facilitation Program to reach $ 300 million, to help meet the increased demand for import and export transactions.
Jurgen Rigterink, EBRD First Vice President, said: “We are very happy to partner again with NBE to provide financing to local small businesses, the backbone of the economy. Strengthening this segment of the Egyptian economy has never been more important than during this crisis.”
Hisham Okasha, NBE Chairman, said: “NBE is committed to minimizing the economic and financial impact of Covid-19 on the Egyptian economy and our customers in particular. This new facility, under the EBRD’s Solidarity Package, targets a crucial segment of the economy, which we will continue to support, thus ensuring its resilience. This facility comes on the heels of an increase of $ 100 million in our trade finance program with the EBRD as well as the signing of a package in the amount of $ 150 million to support young people in business, skills in business and green climate financing.”
Meanwhile, the EBRD has allocated a $ 100 million loan to the 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.
Rigterink 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 judgment. We all look forward to coming out of this period even stronger.”
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