Brent crude sustained at $70/barrel and above, could require future fuel price reviews    2021 International Women's Day highlights transformative power of equal participation: UN    Bibliotheca Alexandrina presents webinar on Arab-Islamic Heritage    Pope Francis calls for peace in Iraq's post-IS Mosul    Egypt's Al-Sisi orders increasing medical convoys, mobile clinics under ‘Decent Life' initiative    Egypt's Shoukry, UN representative discuss ways to achieve political settlement in Libya    Egypt's stocks start week in green, benchmark EGX 30 climbs 1.98%    National Bank of Egypt chairman named among Forbes Middle East's Top 100 CEOs list    Egypt's net foreign reserves rise to $40.2 billion at February-end: c.bank    JICA to continue supporting Egypt's educational reforms to boost women's empowerment, gender equality    Hassan Allam consortium wins contract to manage, operate Grand Egyptian Museum    Capital Intelligence confirms Egypt's sovereign ratings with stable outlook    Sisi approves amending law honoring martyrs, victims, missing, injured in terror attacks    Government inaugurates ICT projects in Kafr El-Sheikh    Saudi-led coalition destroys eight Houthi drones: Saudi TV    Train derails killing 1, injuring 40 in southern Pakistan    Egypt condemns latest terror atack in Somalia    Live score: Liverpool v Fulham (English Premier League)    Pope visits Iraq's war-ravaged north on last day of tour    Egypt detects 588 new coronavirus cases, 38 deaths on Saturday    Messi provides 2 assists for Barca ahead of Madrid derby    Nigeria's Iheanacho, Ghana's Amartey give Leicester win over Brighton    US envoy seeking support to shakeup Afghan peace process, warring parties object    Al-Sisi, Al-Burhan to intensify efforts towards reaching legally binding GERD agreement    UK calls on African countries to join UK-Egypt led Adaptation Action Coalition    Egypt's Shoukry, UN Secretary-General discuss Ethiopia's Nile dam developments    World Bank approves $440 million for enhancing Egypt's railways    Al-Sisi visits Sudan for first time after formation of new transitional government    Art House partners with Cultural Development Fund to present theatrical, musical shows    Egypt stresses necessity of launching 'serious' negotiation process to reach deal on GERD before flood season    Messi serves as bright spot in Barcelona's disastrous season    Zamalek ready with striking force against Esperance Tunis    Egypt clubs protest Football Association decision to cover costs of COVID-19 tests    Hassan Allam wins contract to manage, operate Grand Egyptian Museum    Sudan keen to enhance cooperation with Egypt: Sudanese FM Al-Mahdi    Egypt court upholds 3-year prison sentence for Mubarak-era Minister El-Feky    A Happy Purrfect Rescue Story of 4 Cats in Thailand    Egypt's Zamalek arrive in Tunisia to face Esperance in CAF Champions League    Winston Churchill's Moroccan landscape painting owned by Angelina Jolie sells for $11.5M    Orascom Construction to build Magdi Yacoub Global Heart Centre    Respect for diversity    Huawei launches HUAWEI FreeLace Pro in Egypt with extra-long battery life and top-grade noise cancellation    Enhanced Labs signs Mr. Olympia 2020 "Big Ramy" And His Trainer Dennis James    1st hours of registration for coronavirus vaccine seen 7,000 Egyptians signing up: ministry    King Tutankhamun funerary mask is must-see tourist icon: The Telegraph    Seasoned Egyptian screenwriter Wahid Hamed dies at 76    Coronavirus strikes Egypt's youth team as 17 players, coach test positive    Egypt, Ethiopia, Sudan to resume Nile dam talks today    







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.