EBRD boosts trade in Egypt with $20M facility to EGBANK

CAIRO – 14 November 2017: The European Bank for Reconstruction and Development (EBRD) signed Tuesday a $20 million trade facility agreement with EGBANK under the EBRD’s Trade Facilitation Programme (TFP), to support Egypt’s exporters and importers.

The trade finance line will allow EGBANK to issue guarantees in favor of international commercial banks, covering the commercial payment risk of the transactions undertaken by EGBANK, the international lender said in a statement following the signing.

As per the deal, the EBRD will also provide cash financing for pre-export and post-import financing.

EBRD President Suma Chakrabarti, said: “We are very pleased to team up with EGBANK and welcome it to our Trade Facilitation Programme."

Chakrabarti added that this facility will bolster cross-border trade in the country, reaching out to Egyptian exporters and importers, in addition to contributing to overall economic growth.

EGBANK CEO and Managing Director, Nidal Assar, said: “We are honored and appreciative of the cooperation with the EBRD that aims to foster our trade finance business; fulfilling the needs of our clients and giving us the opportunity to expand our investments in major lucrative markets.”

This trade finance facility, will accompany technical capacity building to EGBANK including advisory services, e-learning programmes, and interactive workshops to transfer know-how and share best practices in trade finance.

Since 2012 to date, Egypt which is a founding member of the EBRD, has been receiving investments worth €3 billion in 66 projects in the country.

The EBRD’s investments focus on financial sector, agribusiness, and manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services.