Under the Facility for Euro-Mediterranean Investment and Partnership (FEMIP), the European Investment Bank, the European Union’s financing institution, is providing EUR 60 million, in support of the private sector in Egypt.
The funds, in the form of global loans, will be channeled through major Egyptian partner banks, to small and medium-sized private sector projects in the areas of industry, services and tourism, as well as agro-food. In a first phase the partner banks include the Export Development Bank of Egypt (EDBE) and the National Bank of Egypt (NBE).
The finance agreement has been signed earlier this week in Luxembourg by Mr. Philippe de Fontaine Vive, EIB Vice-President, in charge of FEMIP, and Mr. Mohamed Sherif Sharaf, EDBE Chairman.
Philippe de Fontaine Vive at the signature ceremony stated: “With this joint effort, FEMIP remains committed to support worthwhile investment projects, via reliable local banking partners, in the productive sectors of the Egyptian economy. A broadened base of partner banks will further assist to stimulate private sector activity. This ties in with FEMIP’s priorities, which aim at liberalisation of the economy and economic cooperation between the Mediterranean Partner Countries underpinned by the Barcelona Process”.
According to Sharaf, with this cooperation EDBE is now hoping to have even greater reach to the SME sector throughout the country. This global loan is part of the efforts to further develop the private sector in the Mediterranean Region, intensifying thereby support for Small and Medium size Enterprises (SMEs) by serving existing needs for term financing, and contributing to the availability of domestic long-term lending facilities. (menareport.com)
© 2004 Mena Report (www.menareport.com)
