(Ecofin Agency) - The National Bank of Egypt, the tenth-largest bank in Africa and the Middle East by assets ($125 billion as of June 30, 2020), will benefit from a $100 million loan from the European Bank for Reconstruction and Development (EBRD).
The facility, which will be on-lent in the form of credits to small and medium-sized enterprises (SMEs), aims to support the Egyptian economy. The loan will be mainly granted to companies in the trade, industry, and sustainable agriculture sectors.
The financing is the third EBRD loan to Egypt's oldest and largest commercial bank under the Green Economy Financing Facility (GEFF), which aims to encourage investment in efficient technologies related to energy efficiency or climate change mitigation.
"The National Bank of Egypt, which has been cooperating with the EBRD since 2013, will extend the financing obtained to SMEs to help improve the use of energy, water, and land resources as well as investments in high-performance technologies," the bank said in an official statement.
In Egypt, a country of more than 106 million people, SMEs account for 25% of GDP and 75% of employment. They play a vital role in the economy, but are limited in their access to capital and are often excluded from the financing options offered by traditional banks.