ICEC

Banque Misr, EBRD sign $50 mln facility to foster foreign trade in Egypt

Egypt’s second-largest state bank, Banque Misr, signed a $50 million trade facility agreement with the European Bank for Reconstruction and Development (EBRD), its vice chairman said on Saturday.

The loan deal is to finance export and import transactions undertaken by the bank, Akef El Maghraby told Amwal Al Ghad.

“The bank is negotiating for some more loans with international financial institutions,” Maghraby said.

The trade facility comes under the EBRD’s Trade Facilitation Programme (TFP), a scheme launched in 1999. The programme aims to promote foreign trade to, from, and among the countries where the European bank invests.

Through this facility, EBRD said in a statement that it would issue guarantees in favour of international commercial banks covering the political and commercial payment risks of the transactions undertaken by Banque Misr. It will also provide financing for export and import transactions.

“The EBRD will also provide technical assistance to enable Banque Misr staff working in trade finance to receive training in the latest international best practices.” EBRD statement added.

Through the TFP programme, EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers, and distributors.

The TFP currently includes over 100 partner banks in 29 countries where the bank invests, with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide.

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