Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



EIB to loan Egypt 1.5 bln euros, diversify portfolio to reflect new realities
Published in Daily News Egypt on 14 - 07 - 2011

CAIRO: The European Investment Bank (EIB), the EU's main financing institution jointly owned by the 27 European Union countries, plans to offer €6 billion in loans to the Arab region in the coming years, of which €1.5 billion will go to Egypt.
“I would expect that we could lend, in the next two years, €1.5 billion to Egypt,” EIB President Philippe Maystadt told Daily News Egypt Thursday, adding that much of this financing has already been “identified in pipeline projects.”
Earlier Thursday, the President of the European Commission, Jose Manuel Durao Barroso, who travelled to Egypt alongside Maystadt, said that there are already “nine Egyptian projects in the pipeline for the coming 12 months, worth well over €1 billion.”
The EIB president also explained that the bank plans to diversify its portfolio in the Egyptian market to better reflect the needs and priorities of the new Egyptian government.
Traditionally, the EIB has focused on financing projects in Egypt's energy sector, which Maystadt stressed will continue into the future, and is “still important for the development of the Egyptian economy.”
“But, the EIB will also give emphasis to other sectors, which are in line with the priorities of the new government,” he explained.
According to Maystadt, he met earlier in the day with Egyptian Prime Minister Essam Sharaf and discussed the idea of funding an “integrated and sustainable development program” to address the “need for more social housing” in Egypt.
“The idea is to combine the financing of infrastructure [with] credit lines to small enterprises, to contribute to the implementation of the program,” he described.
The EIB plans to put €100 million into a “pilot phase” for this program by December, Maystadt went on to explain, adding that such a project would also enjoy funding from the Egyptian government and grants from the EU, alongside the EIB loan.
Turning to the issue of the negative perception amongst the Egyptian public for receiving foreign loans, Maystadt explained that he understood the government's hesitations with accepting foreign loans, but said that it shouldn't pose an issue to the EIB's activities in Egypt.
"I asked [about] this issue to the prime minister and the minister of finance, and I think they're right to be prudent and very cautious about borrowing, because they do not want to increase the debt to much. So I fully understand this.”
According to the bank's head, Egypt's restrictions on foreign borrowing stem mainly from receiving loans for its general budget, whereas the “EIB is something different,” because it involves “borrowing for productive investments.”
As a result of receiving “a return from the investments,” the Egyptian government said they would still accept funding from the EIB, especially for “priority projects, which can have an impact,” Maystadt said.
He also went on to downplay the impact that Egypt's recently downgraded credit rating will have on EIB lending in the country.
The EIB enjoys “EU guarantees” that protect loans made to foreign governments, he noted, meaning, “for the bank itself, nothing has changed.”
“Of course, we will continue to apply our usual credit risk guidelines,” he added, “So this means that we'll look at each project on its own merits.”
This same formula also applies to the private sector, Maystadt went on to explain.
“For lending to private sector, we look at this on a case by case basis. For some borrowers, who have a high credit quality, we will lend on better conditions. For other private borrowers, we will apply a risk premium, but these are the usual rules.”


Clic here to read the story from its source.