Egyptian NBE receives $ 100 million from EBRD to support SMEs
The European Bank for Reconstruction and Development (EBRD) has announced that it has granted a loan of $ 100 million to the National Bank of Egypt (NBE) to support small and medium enterprises (SMEs) in the country.
The loan will benefit Egyptian SMEs in terms of energy efficiency, climate change mitigation and the introduction of adaptation technologies, according to the EBRD.
NBE will on-lend the funds to SMEs operating in the industrial, commercial and agricultural sectors to help improve the use of energy, water and land resources, as well as investments in high-performance technologies, which should support the Egyptian economy, according to the EBRD.
It will also strengthen climate corporate governance at the institutional level.
The EBRD provides typical green technologies in Egypt which are available through the Green Economy Finance Mechanism (GEFF) Technology Selector.
“This is the third EBRD GEFF loan to NBE, which will also benefit from a comprehensive technical cooperation program,” said the EBRD.
NBE is Egypt’s largest commercial bank. Its cooperation with the EBRD, which began in 2013, has included lines of credit and trade finance, also to support women entrepreneurs and youth-led and owned businesses and to boost energy efficiency.
Egypt is a founding member of the EBRD. Since the start of its operations in 2012, the bank has invested more than 7.3 billion euros in 130 projects in the country.
In 2020, the EBRD invested more than € 1 billion in the Egyptian market, the EBRD president told Ahram Online in an exclusive interview published in April during her first official visit to Egypt.
The EBRD implemented a program in 2020 in collaboration with international financial institutions to provide the necessary liquidity to local banks to extend financing to the private sector, including SMEs, to support them financially during the crisis.
As part of this program, the bank allocated $ 800 million in financing to Egyptian banks to lend to SMEs with the aim of supporting their financial resilience and weathering the crisis.