The European Bank for Reconstruction and Development (EBRD) signed on Wednesday two agreements to provide a US$50 million trade finance line to the National Bank of Egypt (NBE) in support of international trade. The trade finance line with NBE will strengthen the development of trade finance in the region promoting trade which contributes to the economic development of Egypt. The two signed agreements comprise a US$25 million revolving loan designated to finance the NBE clients' import and export deals in addition to an additional US$25 million loan dedicated for the NBE's commitments in terms of international trade transactions including; letters of credit, letters of guarantees and etc. This comes after EBRD had signed on December 19, 2013 a $50 million credit line with the NBE to support small and medium-sized enterprises (SMEs), as part of a US$100 million package to the Egyptian bank to support SMEs and international trade. After signing the credit as well as trade finance lines, EBRD has marked its first transaction in the Egyptian financial sector. NBE is the largest commercial bank in Egypt wholly owned by the Government of Egypt. With total assets of EUR 42 billion, NBE has a market share of 20-27% by assets, loans and deposits. NBE has identified Micro, Small, and Medium Enterprise (MSME) lending as a strategic priority, has necessary infrastructure in place and is committed to work together with the Bank to further develop this business line.
