US$ 20 million to National Bank Kuwait – Egypt
The European Bank for Reconstruction and Development (EBRD) is stepping up its support for Egypt’s exporters and importers with a US$ 20 million trade facility to National Bank Kuwait (NBK) – Egypt under the EBRD’s Trade Facilitation Programme. NBK – Egypt will become the fifth issuing bank under the programme in Egypt.
The EBRD's Trade Facilitation Programme (TFP) promotes foreign trade to, from and within the Bank’s countries of operations, including Egypt. Through the facility, the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by NBK – Egypt. In addition, NBK – Egypt will also benefit from the EBRD’s award-winning technical cooperation projects in trade finance.
Philip ter Woort, the EBRD Director for Egypt, said: “We are very pleased to welcome a reputable bank like NBK – Egypt to our trade facilitation programme, which will allow NBK to provide additional support to their Egyptian clients, contributing to the country’s overall economic growth.”
Yasser Ismail Hassan, Managing Director of NBK – Egypt, added: “We are very pleased to extend our cooperation with EBRD by adding the TFP to our platform. We are looking forward to expanding our trade finance services to our clients by adding EBRD guarantees. This step stems from the confidence of the National Bank of Kuwait Group in the Egyptian economy.”
Launched in 1999, the TFP is the platform through which the EBRD provides guarantees to international confirming banks and short term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors. The TFP currently includes over 120 partner banks in 25 countries where the Bank invests, with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide.
EBRD has also signed a loan agreement with NBK – Egypt for $US 50 million on 8 October 2015 for on-lending to Egyptian small and medium enterprises.
The EBRD has committed in excess of €1 billion in Egypt through 27 projects (including regional) since the start of its activities in the country at the end of 2012. The Bank’s investments include the financial sector, agribusiness, manufacturing and services as well as infrastructure projects such as power, municipal water and wastewater, and contributions to the upgrade of transport services.