EBRD provides 1st solidarity package investment to Egypt

12 / 05 / 2020

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD) extends its first investment to Egypt under the bank’s coronavirus Solidarity Package to support small and medium sized enterprises (SMEs). The measure falls within the framework of mitigating the economic fallout of the coronavirus pandemic in Egypt.

The EBRD is providing a $100 million senior loan to buttress small and medium-sized enterprises 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 by $ 100 million under the EBRD’s Trade Facilitation Program 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. 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.”

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.

Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested over €6 billion in 115 projects in the country.