SCZONE showcases investment opportunities to eight Japanese companies    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    Egypt's PM meets Tokyo governor, witnesses signing of education agreements    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Egypt's Sisi, France's Macron discuss Gaza ceasefire efforts in phone call    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    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    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.



Banque du Caire aims to inject EGP 2bn into SMEs during 2016: Chairperson
El-Zahid said the bank has been supporting these projects for more than 10 years, and the loans directed to them represent 5% of the bank's loans portfolio
Published in Daily News Egypt on 19 - 03 - 2016

Banque du Caire Chairperson and CEO Mounir El-Zahid said his bank aims to inject EGP 2bn into small and medium enterprises (SMEs) during 2016.
El-Zahid explained that the bank has been supporting these projects for more than 10 years, and the loans directed to them constitute 5% of the bank's loans portfolio.
He added that the bank recently put into place the final structure of the sector in charge of financing these projects, and created a risk unit that began operating at the beginning of 2016.
What is the size of the SMEs loans portfolio at the bank?
SMEs outstanding finance amounts to approximately EGP 1.4bn, while total funds granted by the bank to these projects recorded EGP 7bn in recent years.
Those funds have contributed to providing roughly 700,000 job opportunities.
What is the ratio of SMEs loans out of the bank's loans portfolio?
The total loans directed to SMEs constitute 5% out of the bank's loans portfolio.
What is the target for 2016?
The bank aims to inject EGP 2bn as new funds into the SMEs sector in 2016.
How will the bank reach the 20% minimum rate that the Central Bank of Egypt (CBE) obliges banks to grant to SMEs out of the bank's total loans portfolio in the next four years?
Banque du Caire has been working for more than 10 years to provide financing for SMEs, and the bank is committed to creating specialised products for these projects. The bank hopes to apply an integrated programme to facilitate the availability of financing opportunities for these projects and institutions, aligning with the CBE initiative to support SMEs, which contributes to pushing the wheel of production.
SMEs are a priority for the bank's expansionist policy, which qualifies SMEs to be at the forefront of the banking sector.
The bank has taken several steps in this regard, based on a study of the needs and requirements of this vital sector, along with selecting qualified human resources and training them in the credit field in accordance with international standards.
How do you view the importance of the unified definition the CBE has created for these projects?
The CBE has created a unified definition of SMEs which provides complete and accurate data about the sector, contributing to increasing the size of the provided funds and facilities to them.
Does the bank have a specialised department to serve this sector?
The bank has established a department to finance SMEs, aligning with the bank's policy to support financing these projects.
The bank recently put in place the final structure of this department, as well as establishing a SMEs risks unit.
This unit began working at the beginning of 2016, to implement the foundations for funding this sector, which differs from major corporate financing.
The bank has introduced and developed a credit competence evaluation system for the sector's clients, so that the bank will be able to continue developing the SMEs' finance portfolio.
Does the bank finance micro-enterprises?
Banque Du Caire has been financing micro-enterprises for more than 13 years. The bank has provided more than 100,000 job opportunities for young people and has created sustainable productivity projects.
Total loans granted to micro-enterprises were about EGP 1.3bn by the end of December 2015, and there was an 18% growth rate and 45% market share in the previous year.
What is your assessment of the initiative launched by the CBE for serving this sector?
The CBE initiative to finance SMEs is a successful step toward integrating the informal sector into a formal one, which supports national economic growth opportunities.
It is expected that the initiative will contribute to achieving financial inclusion by injecting new funds into the economy in an unprecedented manner, thus contributing to an increase in national income and the creation of more job opportunities for young people.
I'd like to point out that the cost of creating a business opportunity in SMEs has reached up to EGP 25,000, compared with EGP 150,000 in large projects. It is also faster to create business opportunities in SMEs than larger projects.
SMEs must be linked to major projects to supply them with goods and intermediate inputs. SMEs can serve as feeder industries for major projects, thus increasing these projects' exports and raising their competitiveness.


Clic here to read the story from its source.