MSMEDA has 41 bln pounds in funding to SMEs: Gamea

The Micro, Small and Medium Enterprises Development Agency (MSMEDA) total funds portfolio has amounted to 41 billion Egyptian pounds according to , MSMEDA Director Nevine Gamea.

The Agency is working with 30 Arab and international granting institution to fund its activities.

Gamea added that the total funds granted to small and micro enterprises have recorded 7.5 billion pounds during a year and half with the percentage of default in repayment of loans amounting to 5 percent.

Gamea made these comments during the Arab Banking Forum on Green Banking, which is held in cooperation with the Central Bank of Egypt and the Union of Banks of Egypt in Hurghada, on July 26-28.

The Agency is currently concentrating on small and micro projects. on other hand, the parliament is studying a legalization regarding the funding of medium enterprises.

“Up to 30% of the agency’s portfolio is allocated to micro-sized projects,” Gamea noted.

MSMEDA, the Governmental entity responsible for SMEs projects in Egypt, offers funds to SMEs projects, either directly or through banks acting as mediators.

The agency also offers direct loans outside the banking system because the values are relatively small. With regards to the insolvency rate, around 5 percent of the participants will be unable to repay the loans.