Two technical assistance agreements to enhance Banque Misr’s support for smaller companies
Largest EIB financial sector technical assistance programme in the Middle East
EIB Vice-President confirms importance of enhancing access to finance for companies impacted by COVID-19 pandemic during Cairo visit
The European Investment Bank (EIB) and Banque Misr today formally agreed to enhance cooperation to further strengthen support for SME lending and increase financing for companies in the sectors most impacted by the COVID-19 pandemic.
The two new technical assistance programmes were launched in Cairo earlier today by EIB Vice-President Gelsomina Vigliotti and Banque Misr Vice-Chairman Akef El Maghraby at Banque Misr’s headquarters.
“Banque Misr and the European Investment Bank are supporting transformational private sector investment by Egyptian companies across the country. It is an honour to welcome Vice-President Vigliotti and the EIB team to Banque Misr’s headquarters. The two new technical assistance programmes agreed today will enable even stronger support for business investment and help smaller companies to grow, create jobs and harness new business opportunities,” said Banque Misr Vice-Chairman Akef El Maghraby .
“The European Investment Bank is committed to supporting private sector investment in cooperation with leading local financial partners. The two new financial sector best practice agreements confirmed today will allow Banque Misr to increase financing for smaller businesses and enhance targeted financing for sustainable investment and sectors most impacted by COVID-19. This builds on the success of €1.75 billion of EIB-backed credit lines managed by Banque Misr agreed over the last five years,” said Gelsomina Vigliotti, Vice-President of the European Investment Bank.
The first technical assistance programme will further strengthen credit risk management and the adoption of SME financing best practice to enable Banque Misr to increase financing for smaller companies.
The second initiative will enable Banque Misr to better identify bankable sustainable private sector investment projects and develop new financial products targeted for small and medium enterprises. This will enhance support for the sectors most impacted by the COVID-19 pandemic and is part of the EU Trade and Competitiveness Programme.
On the sidelines of this agreement, a visit was conducted to one of the small enterprise clients who benefited from the financing, reviewing the extent of clients’ benefits from the financing scheme and its positive impact on the project’s expansion.
Banque Misr is always keen to enter into cooperation agreements to enhance the financing of projects of different sizes, owing to its leading role in supporting the Egyptian economy and achieving sustainable development.
EIB Global is the EIB Group’s new specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
The EIB is providing Banque Misr with a €425 million credit line to support Egyptian private small and medium-sized enterprises that have been impacted by the coronavirus pandemic, and boost their ability to lead the economic recovery in the country. The credit line will finance investment projects, as well as working capital needs, in productive and service sectors, thus sustaining growth and employment while helping to mitigate the economic and social impact of the COVID-19 crisis.
The EIB signed a financing agreement of EUR 250 million with Banque Misr to finance investments by small and medium-sized enterprises (SMEs) and midcaps in the manufacturing and services sectors to improve their competitiveness in Egypt. The financing agreement is expected to sustain thousands of jobs in Egyptian enterprises.