The loan will be utilized by the NBE to support micro, small, and medium enterprises (MSMEs), according to an official statement by the EBRD
The European Bank for Reconstruction and Development (EBRD) has announced its decision to provide the National Bank of Egypt (NBE) with a senior unsecured loan of up to $100 million. The loan will be utilized by the NBE to support micro, small, and medium enterprises (MSMEs), according to an official statement by the EBRD.
Under this agreement, half of the loan amount will be allocated for on-lending purposes to MSMEs located outside of Egypt's major urban centers, namely Cairo and Alexandria. In a significant move towards promoting inclusivity, the remaining half of the financing has been specifically earmarked for supporting enterprises led by women or youth.
Earlier this year, Heike Harmgart, the Managing Director for the Southern and Eastern Mediterranean (SEMED) region at the EBRD, expressed the bank's intentions to acquire shares in several Egyptian companies as part of the government's Initial Public Offering (IPO) program.
Local media reports revealed that discussions are currently underway between the EBRD and The Sovereign Fund of Egypt (TFSE) regarding the potential purchase of a minority stake in the United Bank and the Banque du Caire. However, the EBRD is awaiting further details regarding the specific percentages or shares that will be made available for investment in these two banks.
Harmgart underscored the EBRD's steadfast support for the government's privatization program, emphasizing its significance in driving the growth of the Egyptian economy. She acknowledged the program's pivotal role in attracting foreign investment, boosting cash flows, and increasing overall revenues.
