NBE Seeks €50 Mln Loan From German Development Bank

The National Bank of Egypt (NBE) is in talks with a number of international financial institutions such as German Development Bank (KfW Entwicklungsbank), China Development Bank (CDB) and Export-Import Bank of China to receive soft loans that will go for small and medium enterprises (SMEs) which are considered the backbone of national economy.

Sources said NBE seeks receiving €50 million loan from the German Development Bank which had earlier lend NBE about €33 million. NBE also seeks a financing package amounting to €800 million with soft interest rates and a repayment period of up to 10 years from the China Development Bank and Export-Import Bank of China in order to provide SMEs with instruments and equipments imported from China.

In addition, NBE is conducting negotiations with Greek financial institutions to receive financing package of €500 million to finance SMEs. NBE received about EGP 3 billion worth of finances from 12 financial institutions including African Development Bank, a soft loan from Italy, French Development Agency, a line of credit offered from Spain’s Institute De credit official, Social Fund for Development, Industrial Pollution Control Project and Environmental Commitment Accord.

The bank signed SME finance contracts worth EGP 5 billion with the Social Fund for Development (SFD) to finance SMEs. The total value offered by NBE to SMEs reached EGP 3.3 billion at the end of FY 2011/2012, sources added.