Egypt’s state-run Industrial Development and Workers Bank (IDWBE) seeks to pump funds of 450 million Egyptian pounds ($25.4 million) into small and medium-sized businesses, with interest rates of 5 percent, 7 percent and 12 percent.
The funds are in line with the Central Bank of Egypt’s SMEs initiative, IDWBE’s Vice Chairman Hamdy Azzam said on Wednesday.
In 2016, the central bank sent its directives to the Egyptian banks to give out 20 percent of their total loans portfolio to SMEs. This will provide 350,000 SMEs with 200 billion pounds in four years at 5 percent interest rate.
IDWBE has pumped 350 million pounds in favour of the initiative, amidst plans to inject more within the current year, Azzam told Amwal Al Ghad.
The bank’s SME’s portfolio has recorded one billion pounds by the end of 2017, and targets a growth rate of 50 percent within the current year.