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Doaa Moneim – Ahram Online
The European Bank for Reconstruction and Development (EBRD) is supporting the Egyptian economy with a $200 Million financing package to Banque Misr. The pack is aimed to support trade and on-lending to small and medium-sized enterprises (SMEs), and private businesses impacted by the COVID-19 crisis, the EBRD announced on Wednesday.
“EBRD will provide a $100 Million loan to enable Banque Misr to provide short-term financing to private SMEs facing liquidity strains, due to a decrease in their activities and turnover caused by COVID-19”, according to the EBRD.
It has increased the existing trade finance limit to Banque Misr by $100 Million under the EBRD’s Trade Facilitation Programme (TFP), to meet the increased demand for import and export transactions.
This financing package is under the EBRD’s Coronavirus Solidarity Package, established to meet immediate short-term financing needs to private businesses through existing EBRD partner banks.
The EBRD expects to dedicate the entirety of its activities to combating the economic impact of the crisis and stands ready to provide support worth €21 Billion over the 2020-2021 period, in order to help the 38 emerging economies where it invests.
Under the stand-by program agreement signed by Egypt with the International Monetary Fund (IMF) in June; Egypt is required to support the private sector and engage it in the country’s development process. Egypt is also working hand-in-hand with the public sector in ongoing and future investments.
Egypt’s Minister of International Cooperation Rania al-Mashat said “the EBRD’s facility is in line with the ministry’s strategy focusing on the international developmental partnerships”.
