EGYPT – Banque Misr, one of the largest financial institution in Egypt has acquired a US$550 million loan from European Investment bank to finance small and medium enterprises in the country.
The Chairman of Banque Misr Mohamed El-Etreby and the Director of European Investment Bank signed the loan agreement bringing the total contract between the two institutions to €1billion (about US$1.1 billion).
The loan has a term of three years and contributes to the enhancement of the bank’s foreign currency resources, which are used to finance SMEs and is also within the framework of BM’s support and diversification of various sources of financing.
BM Bank is one of the first banks to comply with the requirements of the Central Bank of Egypt (CBE), taking SMEs financing portfolio to 20% of the bank’s total credit portfolio before the end of the period specified by the CBE on January 1, 2020.
According to the bank’s statement, it is keen on strengthening and diversifying its foreign currency resources, which are used to finance projects of various sizes.
Banque Misr finances small, medium, and micro projects through its branches in all governorates, in various industrial, agricultural, and service fields.
The portfolio of SMEs reached EGP 26bn at the end of September 2019, with an average growth rate of 120% over four years since the CBE was launched.
Banque Misr is an Egyptian bank founded by industrialist Talaat Pasha Harb in 1920 but was later nationalized by the government of the United Arab Republic in 1960.
BANQUE MISR is currently holding equities in 162 projects in various fields, aimed at serving the national economy.
These projects include 8 joint venture banks, 24 industrial projects, 21 tourism projects, 22 housing projects, 20 Agri & food projects, 28 financial projects,15 Service project, 9 IT and communication projects, in addition to 15 Bahagat Group projects.