EBRD provides $50 million Trade Finance Line to Egypt’s Biggest Bank
The European Bank for Reconstruction and Development is supporting the expansion of international trade in Egypt with a US$ 50 million trade facility to the Commercial International Bank (CIB). This comes under the EBRD’s Trade Facilitation Programme (TFP).
Through the facility the EBRD will issue guarantees in favour of international commercial banks covering political and commercial payment risk of the transactions undertaken by the CIB-Egypt.
Launched in 1999, the TFP aims to promote foreign trade to, from and among the countries where the EBRD invests. Through the programme, the 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.
From his part, Hildegard Gacek, the EBRD’s Managing Director for the southern & eastern Mediterranean (SEMED), said: “We are very pleased to welcome Commercial International Bank into the EBRD’s trade facilitation programme. Under the trade finance facility, the EBRD will help Commercial International Bank to extend its support to its Egyptian clients allowing Egypt’s international trade flows to grow, which will contribute to overall economic growth in Egypt.”
In the same vein, Hisham Ezz Al-Arab, Chairman and Managing Director of CIB, said: “We are delighted to have this partnership with the EBRD, which is in line with CIB’s commitment to support the Egyptian economy and underpin its growth. The Trade Facilitation Programme will help CIB to better meet its clients’ trade finance needs and expand the bank’s geographical reach by issuing trade instruments on behalf of its clients.”
To date, the EBRD has committed €634 million across 18 projects in Egypt in various sectors. Under the EBRD’s Small Business Support programmes, the Bank has also provided 185 technical assistance and capacity-building support programmes, which directly benefit small and medium-sized enterprises in Egypt.
