CBE Grants IDBE EGP 500 Mln Capital-Support Loan

The Industrial Development and Workers Bank of Egypt (IDBE) received a capital-support loan worth EGP 500 million from the Central Bank of Egypt (CBE) with an interest rate of 10.25% of the total value of the capital-support loans amounting to EGP one billion, said Hamdi Azam, board member at IDBE.

Amwal Al Ghad had previously reported exclusively that there are negotiations between IDBE and CBE last May over a capital-support loan worth EGP 500 million to finance small and medium enterprises (SMEs). Such finance will be used to plug the liquidity deficit which resulted from the gap between deposits and loans as the portfolio of deposits reached EGP 1.2 billion, while the portfolio of loans stood at EGP 2 billion.

Azzam stated that the bank will receive another capital-support loan amounting to EGP 500 million from CBE by the end of August to be repaid over one year.

The bank received EGP 1.5 billion worth of capital-support loans from CBE in order to strengthen its financial position and be able to pass the current economic turmoil unscathed since it merged with the Egyptian Workers Bank. Azzam added that the bank received EGP 500 million worth of capital-support loan in Q4 of 2011.