QNB ALAHLI becomes first recipient in Egypt under EBRD’s coronavirus solidarity package
QNB ALAHLI is the first recipient in Egypt under the European Bank for Reconstruction and Development’s (EBRD) package, which was launched in response to the economic impact of the coronavirus pandemic.
The QNB ALAHLI package was set up to meet the immediate short-term financing needs of existing clients, the EBRD said in a statement.
The EBRD said it was extending a $100 million senior loan to QNB ALAHLI for on-lending to firms, with a special focus on small and medium-sized enterprises (SMEs) that are experiencing a decrease in their activities, turnover and/or profitability.
Small businesses form an important segment of the Egyptian economy and supporting them in these challenging times amid coronavirus crisis remains a priority for the EBRD, the statement read.
In addition, the EBRD further said it was increasing an existing uncommitted trade finance limit for QNB ALAHLI by $ 100 million under the Bank’s Trade Facilitation Programme to reach $250 million, to help meet the increased demand for import and export transactions.
“We are very proud to roll out our swift support to the Egyptian economy by partnering with QNB ALAHLI. This financial package is key for the resilience of local Egyptian businesses – it will provide much-needed funding to SMEs, large enterprises and trade companies in this global crisis.” Heike Harmgart, EBRD Managing Director for the southern and eastern Mediterranean region, said.
Mohamed El-Dib, chairman and managing director of QNB ALAHLI, said: “The latest transactions further show that the top priority of both the EBRD and QNB ALAHLI is to support clients through these challenging times, which is in-line with the Central Bank of Egypt directions to support SMEs projects.
“It also demonstrates the trust and confidence that we have built over the years, enabling us to continue our cooperation and deliver business even in the current crisis.”
According to the statement, QNB ALAHLI is one of the EBRD’s largest clients in the financial sector in Egypt. The Egyptian bank has been a longstanding partner of the EBRD since 2015, when a first SME loan and a trade finance facility were signed.
“The coronavirus pandemic and its economic impact present an unprecedented challenge to the regions where the EBRD invests. The Bank has rapidly stepped up its support with a response and recovery programme to help the 38 emerging economies where it invests.” EBRD statement read.
“The EBRD expects to dedicate the entirety of its activities to combating the economic impact of the crisis and stands ready to provide support worth €21 billion over the period 2020-21.”
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, EBRD has invested over €6 billion in 115 projects in Egypt.