Arab Banking Corporation Allocates EGP 300 Mln For SMEs

The Arab Banking Corporation-Egypt targets to finance small and medium enterprises (SMEs) in 2013 as it allocated EGP 300 million for the sector.

Akram Tinawi, CEO of ABC, said in an interview with Amwal Al Ghad that the bank targets to finance industrial and pharmaceutical sectors as well as building materials and motor projects. SMEs accounted for 80% of the country’s GDP, he noted.

Financing loans to SMEs will be met through customers’ deposits as the bank will not borrow from the Social Fund for Development in the upcoming period, he continued.

Tinawi emphasized on the important role of banks in supporting SMEs with credit and financial consultants. He also pointed out that there shall be laws supporting these enterprises.

Egypt can benefit from the experiences of other countries that made SMEs flourish such as Malaysia which has banks specialized in financing this sector, he added.