Banque Misr - Creative Commons via Wikimedia
CAIRO – 14 November 2017: The European Bank for Reconstruction and Development (EBRD) signed Tuesday a $75 million loan agreement with state-owned Banque Misr to support the growth and development of small and medium-sized enterprises (SMEs) in Egypt.
SMEs account for over 90 percent of enterprises in Egypt and contribute to the majority of total employment in the country.
The EBRD credit line to Banque Misr will enable Egypt's second largest public bank to increase its funding for SMEs by reaching out to new clients and regions outside the Greater Cairo region and Alexandria, the international lender said in a statement after the signing.
Sir Suma Chakrabarti, EBRD’s president, said: “We are very pleased to partner with Banque Misr, a key strategic player in helping to develop the SME sector in Egypt."
"Small businesses are the backbone of the economy and increasing the availability of finance for this sector will contribute towards making the country’s economy more competitive and resilient,” he added.
Mohamed El Etreby, chairman of Banque Misr, said: “The cooperation between Banque Misr and the EBRD will support our strong objective to sustain the development of Egyptian SMEs, providing them with the financial resources to expand their businesses.
Developing SMEs is key for the country as it provides much-needed job opportunities and contributes to the country’s overall economic growth.”
As per the agreement, the EBRD will provide a technical assistance package to support Banque Misr to strengthen its skillsets and competitiveness in SME lending.
Since 2012 to date, Egypt which is a founding member of the EBRD, has been receiving investments worth €3 billion in 66 projects in the country.
The EBRD’s investments focus on financial sector, agribusiness, and manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services.