Cairo – Mubasher: The European Investment Bank (EIB) announced the provision of a EUR 425 million credit line to Banque Misr to help small-and medium-sized enterprises (SMEs) withstand the coronavirus (COVID-19) crisis.
The credit line will help boost the ability of SMEs to lead the economic recovery in the country and finance investment projects and working capital needs in productive and service sectors, the EIB said in a statement on Thursday.
“The EIB financing forms a part of the EIB contribution to the Team Europe response to the COVID-19 crisis in the European Union partner countries.”
Flavia Palanza, Director for Neighbouring Countries at EIB, said: “Our new credit line comes at a time when SMEs need strong support to overcome the challenges created by the COVID-19 pandemic."
For his part, Akef El-Maghraby, Vice Chairman of Banque Misr, said that “the agreement seeks to assist national companies – mainly SMEs – in performing various activities, especially in light of the implications of the COVID-19 crisis.”
The size of Banque Misr’s financing portfolio of SMEs made up 20% of the total financing portfolio, he added.
Since 2015, the EIB has provided SMEs and mid-caps in Egypt with EUR 3.9 billion through 15 operations, representing a third of the bank’s portfolio in Egypt.
