The European Investment Bank (EIB)signed a financing agreement of EUR 250 million with Banque Misr to finance investments by small and medium-sized enterprises (SMEs) and midcaps in the manufacturing and services sectors to improve their competitiveness in Egypt. The financing agreement is expected to sustain thousands of jobs in Egyptian enterprises.
The EIB’s loan is the first tranche of EUR 500 million approved by the European Investment Bank’s Board of Directors. It will support Banque Misr’s ambitious plans to expand SME financing to meet the considerable growth expectations for SME lending in the coming years.
The finance, which will improve SMEs’ access to finance, is in line with the priorities of the Egyptian Government and the EU’s cooperation with Egypt. The European Investment Bank has provided a number of loans for SMEs and midcaps in Egypt. Since 2009 the EIB has provided financing to 246 SME projects in Egypt for a total value of EUR 743 million, most of which (56%) were in manufacturing sector. These projects helped to sustain over 40.000 jobs at private businesses. Additional financing to SMEs (such as this loan to Banque Misr) is continuously being made available in Egypt.
Source: European Investment Bank (EIB).