Egypt taps NBD, FAB to arrange $1 billion loan

Egypt has tapped Emirates NBD and First Abu Dhabi Bank (FAB) to arrange a loan worth more than $1 billion as it tries to plug its financing gap caused by the covid-19 pandemic, Reuters reports, citing two sources familiar with the matter.

The two banks are in talks with other lenders to assist with the loan, the sources said.

The Egyptian government, Emirates NBD and FAB did not immediately respond to requests for comment. The sources declined to be named because the information is not public.

The financing plan comes as Egypt’s economy suffers from the impact of the coronavirus outbreak, which has badly hit its tourism and construction sectors.

Egypt’s foreign reserves declined by $1 billion in May as the COVID-19 crisis has squeezed some of the country’s main sources of foreign currency, especially tourism and remittances from workers abroad. (Reporting by Saeed Azhar, Davide Barbuscia;