Industrial Development Bank Receives Second Tranche Of CBE’s Loan

The Industrial Development and Workers Bank of Egypt (IDBE) received the second tranche of EGP 500 million of a loan from the Central Bank of Egypt (CBE). The total value of the loan is EGP one billion. Such finance is offered to the bank to finance small and medium enterprises (SMEs), said El-Sayed El-Kosayer, chairman of the bank.

The bank received the first tranche of the loan that is amounting to EGP 500 million last month. The loan will be repaid over a year with an interest rate of 10.25%, El-Kosayer added.

In addition, the bank received a loan of EGP 1.5 billion from CBE to plug the liquidity deficit which resulted from the gap between deposits and loans. The loan will help the bank to strengthen its financial position and be able to pass the current economic turmoil unscathed after it merged with the Egyptian Workers Bank. The bank also received a loan amounting to EGP 500 million from CBE during the last quarter of 2011.

The bank’s net profit grew by 700%, registering EGP 36 million, at the end of last August as compared to the net profit the bank achieved a year earlier.

The bank’s portfolio of loans and credit facilities rose by 44% at the end of last August. The bank injected EGP 637 million in its portfolio since September 2011, despite the economic challenges at that period. This reflects the bank’s interest in supporting the national economy, El-Kosayer affirmed.