Half of the financing will be directed to help Banque du Caire increase the lending value available to Egypt’s MSMEs
A branch of Banque Du Caire is pictured at the Upper Egypt city of Aswan, Egypt February 21, 2020.
REUTERS/Amr Abdallah Dalsh
By Staff Writer, Arab Finance
ArabFinance: State-run Banque du Caire is receiving $100 million (EGP 1.57 billion) from the European Bank for Reconstruction and Development (EBRD) as a funding package for trade financing and on-lending to local micro-, small, and medium-sized enterprises (MSMEs), according to a March 17thstatement.
Half of the financing will be directed to help Banque du Caire increase the lending value available to Egypt’s MSMEs, in addition to expanding its lending outside the Greater Cairo region.
The remaining $50 million (EGP 785.56 million) comes under the EBRD’s Trade Facilitation Programme that will be used to issue guarantees to confirming banks and provide cash advances to fund the local import and export sector.
The two agreements mark the start of a new strategic partnership between the two institutions,” EBRD Managing Director for the Southern and Eastern Mediterranean Heike Harmgart commented.
Harmgart earlier told ArabFinance that the EBRD approved $850 million (EGP 1.33 billion) in credit lines and trade facilities for Egyptian banks since the beginning of the COVID-19 crisis.
*At press time, the conversion rate is $1 = EGP 15.71
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