EGB Egypt signs $20 mln loan agreement to finance SMEs

Cairo-based Egyptian Gulf Bank has signed a loan agreement with the European Investment Bank (EIB) to receive a $20 million loan to finance small and medium-sized projects (SMEs), the lender said in a press release.

“The entire loan will be dedicated to SMEs,” the bank confirmed.

“EGBANK’s strategy is aligned with the direction of the Egyptian government’s vision 2030 and the Central Bank of Egypt’s (CBE) initiative to support SMEs,” it added.

The loan is expected to support Egypt’s SMEs initiative, launched by President Abdel Fattah al-Sisi in 2016, to provide  200 billion Egyptian pounds in loans to small and medium-sized companies.

Although SMEs represent the majority of active private enterprises in Egypt and contribute 75 percent of total employment, access to financing remains a key concern and resolving this issue has become a top priority for the authorities.

EGBANK’s loan portfolio reached 18.95 billion pounds by the end of 2016, marking a 130 percent increase compared to December 2015.

The bank witnessed a 44 percent increase in profits, reaching 401.5 million pounds, in addition to doubling customer deposits, demonstrating 97 percent growth rates, reaching 40.65 billion pounds.

EGBANK’s net interest income increased by 115 percent, in addition to increasing its net banking income by 103 percent.

Source: Daily news