EBRD provides Banque Misr with $100M loan

CAIRO – 11 August 2020: The European Bank for Reconstruction and Development (EBRD) announced Tuesday approving the provision of a senior unsecured loan to Banque Misr for $ 100 million, under the Bank's Resilience Framework (FR) developed to address the impact of the COVID-19 pandemic on regional economies. 

“The proceeds of the proposed loan will be on-lent to local private small and medium-sized enterprises (SMEs), and to corporates, supporting them in bridging liquidity needs that may arise as a result of the pandemic,” EBRD clarified in a statement.

EBRD explained that this  financing will help Banque Misr in providing funding to local SMEs and corporates experiencing either a decrease in their activity, turnover, and/or profitability, in turn leading to payment delays and potential defaults, or growing capacity needs arising from a significant fluctuation in demand in particular sectors.

“The transition impact of the project will stem from its contribution to the continued functioning of the Egyptian economy by helping private SMEs and corporates address challenges resulting from the current crisis. The project will also help BM maintain its competitiveness in the market,” it stated.

Minister of International Cooperation Rania al-Mashat stated earlier that cooperation volume between Egypt and the European Bank for Reconstruction and Development amounts to €6.5 billion through 115 projects.

<blockquote class="embedly-card"><h4><a href="https://www.egypttoday.com/Article/3/88807/EBRD-invests-6-5B-in-Egypt-through-115-projects">EBRD invests €6.5B in Egypt through 115 projects</a></h4><p>CAIRO - 21 June 2020: Cooperation volume between Egypt and the European Bank for Reconstruction and Development amounts to €6.5 billion through 115 projects, according to Minister of International Cooperation Rania al-Mashat.</p></blockquote>

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Banque Misr was established in 1920 and is the second-largest bank in Egypt with total assets of €54.1 billion (December 2019) and market shares of up to 19 per cent in terms of assets, loans and deposits.