EIB ready to increase credit lines in Egypt, EBRD expands its solidarity package

CAIRO – 28 April 2020: European Investment Bank (EIB) is ready to increase credit lines, introduce new lines through banks, and cooperate with the private sector in the pharmaceutical industry in Egypt, according to Head of the regional office of EIB in Cairo Alfredo Abad.

Moreover, the executive director of the Southern and Eastern Mediterranean of the European Bank for Reconstruction and Development (EBRD) announced that the bank decided to expand the solidarity package, Flexible Framework, which provides financing to meet the need for financial liquidity in the short term. The Flexible Framework focuses on financial institutions, small and medium enterprises, tourism, transport companies, agricultural business, and medical supplies.

This came during Prime Minister Mostafa Madbouli's meeting with Minister of International Cooperation Rania al-Mashat, as part of the continuous follow-up of the ministry's work, and its efforts to mitigate the negative economic effects of the emerging coronavirus pandemic, in cooperation with international financing institutions, and the private sector.

The minister of international cooperation reviewed the results of the meetings she held through video conferencing with the representatives of the international financial institutions and the private sector, to discuss possible ways to help the private sector overcome the negative economic impacts of the coronavirus.

Mashat clarified to the prime minister that all parties affirmed their support for the Ministry of International Cooperation’s vision of the importance of the private sector's participation in a greater proportion of the development projects, given its role as a major driver of growth. They stressed that successful participation of the private sector can be implemented through the integration between development projects funded by development partners and private sector investments.

She indicated that the World Bank Group affirmed its support for Egypt's efforts to implement and finance structural reforms and public policy measures, to enable the private sector to play a greater role in development.

According to Mashat, International Finance Corporation (IFC) officials in Egypt confirmed their support for the government's vision on consulting with its private sector partners, and supporting private companies during the current crisis.

The officials affirmed their full cooperation with various sectors to find innovative solutions to the challenges related to the virus and to help them turn these challenges into opportunities.

Mashat also mentioned the extraordinary high-level meeting of the heads of the four working groups emanating from the Steering Committee of the Strategic Framework for Partnership with the United Nations, which was held by the Ministry of International Cooperation on April 27 through via video conference, and was attended by a number of ministers, the president of the National Council for Women, and the resident coordinator of the United Nations.

The minister noted that during the meeting, which comes in the strategic framework of the partnership with the United Nations 2018-2022, all the parties agreed on the need to continue the strategic dialogue between the government and the United Nations. They stressed the importance of the continuous coordination to reach a unified strategic plan for the support that the United Nations will provide to the Egyptian government to face the social and economic consequences as well as the negative impact of the coronavirus on the health sector.

She explained that the framework is based on 4 axes: Comprehensive economic development, social justice, women's empowerment and sustainable management of natural resources with a total value of $1.2 billion. The minister of international cooperation will chair the steering committee of the strategic framework for partnership with the United Nations.