Egyptian Bank has become the first financial institution in the country to receive the European Bank for Reconstruction and Development (EBRDs) fund under its Solidarity Package to meet financing needs of existing clients.
The Package comprises of a $100 million senior loan to support local businesses in need of short-term financing, and additional US$ 100 million increase on the current trade finance limit. The European Bank for Reconstruction and Development (EBRD) is rolling out this programme in response to the economic impact of the coronavirus pandemic in Egypt, with a financial package for QNB ALAHLI, one of the country’s largest commercial banks, to support local enterprises.
The US$100 million senior loan to QNB ALAHLI is or on-lending to firms, with a special focus on small and medium-sized enterprises (SMEs) that are experiencing a decrease in their activities, turnover and/or profitability. Small businesses form an important segment of the Egyptian economy and supporting them in these challenging times remains a priority for the EBRD.
In addition, the Bank is increasing an existing uncommitted trade finance limit for QNB ALAHLI by US$ 100 million under the EBRD’s Trade Facilitation Programme to reach US$ 250 million, to help meet the increased demand for import and export transactions.
Heike Harmgart, EBRD Managing Director for the southern and eastern Mediterranean region, commented: “We are very proud to roll out our swift support to the Egyptian economy by partnering with QNB ALAHLI. This financial package is key for the resilience of local Egyptian businesses – it will provide much-needed funding to SMEs, large enterprises and trade companies in this global crisis.” Mohamed El-Dib, Chairman and Managing Director of QNB ALAHLI, said: “The latest transactions further show that the top priority of both the EBRD and QNB ALAHLI is to support clients through these challenging time, which is in-line with the Central Bank of Egypt directions to support SMEs projects. It also demonstrates the trust and confidence that we have built over the years, enabling us to continue our cooperation and deliver business even in the current crisis.”
QNB ALAHLI is one of the EBRD’s largest clients in the financial sector in Egypt. The bank has been a longstanding partner of the EBRD since 2015, when a first SME loan and a trade finance facility were signed. The coronavirus pandemic and its economic impact present an unprecedented challenge to the regions where the EBRD invests.
The Bank has rapidly stepped up its support with a response and recovery program to help the 38 emerging economies where it invests. 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 period 2020-21.
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