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The European Bank for Reconstruction and Development (EBRD) has approved the provision of a $100m senior unsecured loan to Banque Misr, under its Resilience Framework.
The EBRD developed the framework as a means of addressing the impacts of the novel coronavirus (COVID-19) pandemic on regional economies.
The bank said that the proceeds of the proposed loan will be on-lent to local private small- and medium-sized enterprises (SMEs) and to corporates. The finance is designed to provide businesses of varying sizes with the support to bridge their liquidity needs that may arise as a result of the pandemic.
The financing will help Banque Misr in providing funding to local SMEs and corporates experiencing a decrease in their activity, turnover, or profitability. This decrease in financial earnings may, in turn, lead to payment delays and potential defaults or growing capacity needs arising from a significant fluctuation in demand in particular sectors the EBRD noted.
The bank added that the projects transition impact will stem from its contribution to Egypts continued economic functioning by helping private SMEs and corporates address challenges due to the current crisis. The project will also help Banque Misr maintain its market competitiveness.
The response to the global health crisis has allowed Banque Misr to aid in the liquidity needs of SMEs and corporates experiencing slowdown and payment delays.
Banque Misr was established in 1920 and is the second-largest bank in Egypt with total assets, reported in December 2019, standing at 54.1bn. It also reported that its market shares stand at 19% in terms of assets, loans and deposits.
2020 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).
