EBRD boosts trade in Egypt
The European Bank for Reconstruction and Development (EBRD) is stepping up its support for Egyptian exporters and importers with a US$ 50 million trade facility to the Arab African International Bank (AAIB) Egypt under the EBRD’s Trade Facilitation Programme (TFP).
Through this facility the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by AAIB as well as provide financing for export and import transactions.
The EBRD will also provide technical assistance to support the training of AAIB staff working in trade finance.
Launched in 1999, the TFP aims to promote foreign trade to, from and among the economies where the EBRD invests. Through the programme, 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 100 partner banks in 29 economies where the Bank invests, with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide.
Egypt is a founding member of the EBRD and has been a country of operations since 2012. To date, the Bank has invested over €4.5 billion in 87 projects in the country. The EBRD has also provided technical assistance to more than 750 small and medium-sized local enterprises.
AAIB is the fifth-largest bank in Egypt. The bank has market shares of 4.2 per cent, 4.6 per cent and 4.4 per cent in terms of total assets, loans and deposits respectively.