SMEs- via Wikimedia Commons
LUXOR, Upper Egypt - 13 March 2022: The Central Bank of Egypt is acting to reduce risks that might face small, medium and micro-sized enterprises during global economic crises, said deputy governor of the CBE Gamal Negm Sunday.
Addressing a conference on the future of SMEs – which is organized by the Union of Arab Banks (UAB) in the Upper Egyptian city of Luxor under the auspices of the Federation of Egyptian Banks (FEB) – Negm said the latest such crises are the coronavirus pandemic and the Russian-Ukrainian tension.
Securing financial support and funds is no longer a challenge for SME owners, Negm stated, stressing that it is rather technical support that they seek to obtain from banks. This already started in the past few years, he noted.
The Credit Guarantee Company (CGC) has been directed to cover financing operations carried out by the banks for the sake of the SME sector, Negm told the conference.
He added that the CBE, in turn, offers support for SMEs and helps them tap new markets. Work is underway to establish an export guarantee company, he noted.
Indeed, the coronavirus pandemic and the Russian-Ukrainian crisis have spilled over into supply and distribution chains worldwide, Negm acknowledged, pointing out that the SMEs and emerging companies remain the worst hit by those crises.
Negm said that the CBE initiatives have been outlined to alleviate risks those firms might be facing.