Industrial Development Bank Secures US$20 Mln Loan To Finance SMEs

The Industrial Development and Workers Bank of Egypt received a loan worth US$ 20 million from the National Bank of Egypt (NBE) to be offered to small and medium enterprises (SMEs) under the environmental compliance agreement.

Sources said the Industrial Development Bank negotiates with NBE to manage the EGP 55 million finance that will be offered to a cleaning company to establish a waste recycling factory after the clearing company was assigned by the government to clean up the streets in Cairo, Alexandria and Helwan.

The finance is divided into a direct finance of EGP 35 million and letters of guarantee of EGP 20 million. The direct finance is divided into mid-term credit facilities of EGP 25 million over a period of three years and disbursement period of six months as well as a short-term finance of EGP 10 million for purchasing equipments and machines for the factory to be repaid over a year. In addition, the letters of guarantee which are valued at EGP 20 million will be offered to the company in order to help it deal with the other governorates.

The Industrial Development and Workers Bank of Egypt is in talks with the Ministry of International Cooperation and Ministry of Industry to benefit from the international loans and grants in order to achieve the bank’s strategy which aims at expanding in financing SMEs. The value of finances offered by the bank to SMEs reached EGP 325 million at the end of last October, compared to EGP 144 million at the end of 2011.