The National Bank of Kuwait (NBK) – Egypt signed a loan contract of $50m with the European Bank for Reconstruction and Development (EBRD) to finance small and medium-sized enterprises (SMEs).
The loan contract was signed on Thursday by Managing Director of NBK – Egypt, Yasser Hassan, and EBRD Director for Egypt, Philip ter Woort.
Hassan explained that NBK- Egypt will distribute the loan through credit facilities for companies and owners of SMEs, in accordance with the economic feasibility of each project.
He added that NBK is confident in the Egyptian economy and its prospects for growth due to the strong elements and foundations it possesses.
According to Hassan, NBK is keen on keeping up with economic developments and changes that are currently taking place in Egypt, which would drive economic growth in various fields. Egypt is one of the leading markets, in which the bank’s foreign strategy focuses. The reason of this is that it is a promising market that offers strong opportunities for growth, and the new areas of financing enhances the bank’s stature and presence in this promising market.
On his part, Philip ter Woort said that the agreement aims to support SMEs, as it is an important pillar of EBRD’s strategy in Egypt. He explained that SMEs in Egypt are suffering from the lack of funding, despite the fact that these projects and companies account for about 90% of the size of the companies operating in Egypt, and employs the vast majority of the workforce in the country.
The Egyptian government pays particular attention to the support and development of this sector and it is on top of its priorities, according to the director, so that it becomes a strong economic sector and solve the unemployment crisis.
EBRD’s investments in Egypt exceeded €1bn since it began its activities in Egypt, said Philip ter Woort. The bank is invested in 27 projects in a wide range of sectors – financial, agricultural, manufacturing, electricity, water and sanitation, and transport.