US$10 million to Al Ahli Bank of Kuwait – Egypt
The European Bank for Reconstruction and Development (EBRD) is supporting the expansion of international trade with a US$ 10 million trade facility to Al Ahli Bank of Kuwait – Egypt (ABK – Egypt) under the EBRD’s Trade Facilitation Programme (TFP). ABK – Egypt is now one of 11 issuing banks under the TFP in Egypt.
The EBRD’s TFP promotes foreign trade to, from and within the Bank’s countries of operations, including Egypt. Through the facility, the EBRD provides guarantees in favour of international commercial banks covering the commercial payment risk of the transactions undertaken by ABK – Egypt. The EBRD will also offer additional limits and longer tenors for guarantee transactions that are expected to be used mainly for the import of machinery and equipment.
Commenting on the signing of the trade facility, EBRD President Sir Suma Chakrabarti said: “We are very pleased to welcome ABK – Egypt to our Trade Facilitation Programme, which will allow the bank to better meet the trade finance needs of its clients and enhance trade, thus contributing to the country’s overall economic growth.”
Khaled El Salawy, CEO and Managing Director of ABK – Egypt, commented: “Capitalising on our vast experience in trade finance and our large network of global correspondent banks, this cooperation with the EBRD will allow ABK – Egypt to further expand its trade finance operations to new untapped areas. Such valuable partnerships support the bank in pursuing its proactive strategy to provide innovative trade finance solutions that meet our clients’ needs and help them grow their business.”
The EBRD’s TFP has been running since 1999 and currently includes over 100 partner banks in 28 countries where the EBRD invests and more than 800 confirming banks worldwide.
Egypt is a founding member of the EBRD and has been receiving funding since 2012. To date, the Bank has invested over €3 billion in 66 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services. The Bank has also provided technical assistance to more than 500 small and medium-sized local enterprises.