FILE - Contributors during the signing ceremony
CAIRO – 27 November 2017: Banque Misr and the Small and Medium Enterprises Development Agency (MSMEDA) have signed a 400 million LE loan, the Bank announced in a statement on Monday.
MSMEDA offers funds for the SME’s projects either directly or by using the banks as mediators.
Since cooperation started between Banque Misr and MSMEDA, the bank has got nearly 2.6 billion LE from the governmental authority.
The loan’s term is five years and is meant for setting up projects, creating permanent and temporary jobs, and raising production and income, the statement added.
MSMEDA Director Nevine Gamea told Egypt Today in November that beneficiaries can access a maximum value of LE 3 million and a minimum value of LE 10,000 if the projects are in the commercial or service sectors. Loans can reach LE 5 million if the project is in the industrial sector.
In some cases, the agency reaches beneficiaries through collaborating with a network of 450 development associations, which reach some citizens it can’t access without their help, and giving them micro-loans with value between LE 500 and LE 10,000.
The agency is also offering direct loans outside the banking system because the values are relatively small. With regards to the insolvency rate, around 5% of the participants will be unable to repay the loans.
Egypt started the strategy aimed at enhancing the micro and SME sector. The central Bank of Egypt announced an initiative to fund Egyptian SME with LE 200 billion.
Banque Misr, Egypt’s second largest state-owned bank financed LE 4.4 billion to (SME) and micro projects in June 2017, the bank stated in late November.
In cooperation with the Ministry of Local Development, Banque Misr has financed SME through 308 local units across Egypt since March 2015.
Micro-projects received LE 1.3 billion in funds from Banque Misr, distributed amongst nearly 60,000 clients at the end of June.