Banque Misr, EIB Sign Loan Agreement to Finance SMEs

The state-owned Banque Misr signed on Tuesday a loan agreement worth €425 million from the European Investment Bank (EIB) to finance small and medium sized enterprises (SMEs) to help them cope with the repercussions of the coronavirus (COVID-19).

The bank confirmed that the agreement represents the first tranche of the total loan amounting to €750 million, provided that the second tranche will be signed in early 2022. The loan, which will be distributed over 6 years will contribute to enhancing the bank's foreign currency resources to finance SMEs..

This is the third agreement that is signed between Banque Misr and the European Investment Bank, where the first was signed with a sum of €500 million, and the second with an amount of €500 million, bringing the total contract to about €2 billion.

It is noteworthy that Banque Misr, and the National Bank of Egypt investment arm “Al-Ahly Capital Holding” inked an agreement last Nov. to equally acquire 40% of the International Business Associates Group for Money Transfer (IBAG), Western Union‘s representative in Egypt.