The European Investment Bank provides a credit line of 425 million euros to Banque Misr to support small and medium-sized Egyptian companies affected by the Coronavirus epidemic, and to enhance their ability to recover economically from the effects of the global epidemic.
The line of credit, according to a statement issued by the European Investment Bank, finances new investment projects, as well as working capital needs in the production and service sectors, which contribute to maintaining economic growth and creating job opportunities in a way that contributes to mitigating the economic and social impact of the Coronavirus crisis.
The European Investment Bank financing comes within the framework of the “Team Europe” initiative or the unified European response to the Corona crisis in the partner countries of the European Union. The financing is in line with the objectives stipulated by the European Union’s mandate to the European Investment Bank for external lending during the period (2014-2020).
It also corresponds to the axes of cooperation between Egypt and the European Union, which were stipulated in the Joint Declaration of the European Union for Egypt for the period 2017-2020. The funding is in line with the priorities of the partnership between Egypt and the European Union because it aims to support the development of the private sector with a focus on small and medium-sized companies, increase the competitiveness of the economy, create job opportunities and support financial inclusion.
“We are strengthening our partnership with Banque Misr to support the Egyptian Bank’s strategy to expand financing small and medium enterprises,” said Ms. Flavia Palanza, Director of Operations for Neighboring Countries at the European Investment Bank.
The new credit line comes at a time when small and medium-sized companies need strong support to overcome the challenges posed by the Covid-19 pandemic, as these companies are most vulnerable to the impact of the crisis hitting the world. We are proud of our partnership with Banque Misr and the tangible impact of the existing cooperation between us on the lives of Prime Time Zone in Egypt. ”
“Small and medium-sized enterprises create jobs and add value and innovation while providing products and services that Prime Time Zone need,” said Christian Berger, the European Union’s ambassador to Egypt.
During these difficult times, companies need more than ever to obtain easy credit and financing from banks.
A number of European Union programs – which mix European Union grants with loans provided by European financing institutions – provide support to companies through the possibility of obtaining financing directly in an easy way or within the framework of credit guarantee programs with local partner banks.
“Last April, the European Union launched the Team Europe initiative to support partner countries in dealing with the effects of the epidemic, including its social and economic impacts,” added Mr. Burger.
Today, our partner, the European Investment Bank, signs another important financing from Team Europe that will have a real impact on SMEs and ultimately the lives of Prime Time Zone all over Egypt. ”
Mr. Akef Al Maghribi – Vice Chairman of Banque Misr – confirmed that the signing of this agreement aims to help national companies mainly small and medium companies in performing various activities, especially in light of the repercussions of the Coronavirus crisis. Banque Misr is considered one of the leading financial institutions in supporting and financing small and medium enterprises. It attaches great importance to the small and medium enterprises sector, as the size of the financing portfolio for this sector has reached 20% of the total financing portfolio.
This comes in line with the directives of the Central Bank of Egypt and the state’s efforts to advance the sector in order to improve economic indicators, boost economic development rates, promote local products and reduce the import bill.
Akef Al-Maghribi also confirmed that Banque Misr is also interested in providing financial support to the small and medium-sized companies sector through its network of branches that reach more than 700 branches throughout the Arab Republic of Egypt. This is coupled with the bank’s endeavor to provide distinct financing mechanisms that meet the financing needs of all projects in all sectors of economic and service activities, which will be reflected in the advancement of the national economy.
Akef Al-Maghribi said that Banque Misr launched the “Express” loan for small projects, which is considered the first integrated digital product, which allows customers of Banque Misr for Small Enterprises to submit a financing request electronically via the website, without the need to visit the bank branch and through a step-by-step process that includes less Measures. The small business financing loan is the fastest loan in Egypt and can be obtained within 5 days of the application date.
Banque Misr is the second largest bank in Egypt with a clear focus on lending to SMEs and a large retail presence in all governorates. In 2019, Banque Misr served more than 123,000 SMEs across the country, making it one of the biggest supporters of the SME sector in the country.
Since 2015, the European Investment Bank has provided 3.9 billion euros to support Egyptian small and medium-sized companies and companies through 15 operations, which represents about a third of the bank’s portfolio in Egypt.
Over these years, and in line with the objectives of the European Union’s mandate and national priorities, the EIB has focused on building fruitful relationships with public and private sector-owned banks committed to supporting SMEs, particularly with institutions willing and able to reach segments traditionally deprived of access to finance, Segments like small, rural, youth and female.
The article was a line of credit from “European Investment” for small businesses, valued at 425 million euros, through Banque Misr, and was written in the Al-Borsa newspaper.