Gold reaches more than 2-year low on dollar strength, Fed concerns    U.S. markets finish chaotic week in red note    EIB: Egypt has made recent greet progress in green projects    Apple's iPhone 14 is the easiest to fix since 2016    Apple to hike App Store prices in Egypt and other countries in Asia, Europe    Dior new pre-fall men collection to take place for the first time in Egypt    Putin: Turkey to pay 25% of Russian gas in rubles    Kazakhstan's President awards Egypt's Azhar imam Astana International Prize    UK economy turmoil follows Queen Elizabeth's death    Three possible scenarios as Egypt's central bank governor resigns – MP    Adele is living a love story, wants to be a homemaker    In Photos: Egypt swears in 13 new ministers after major Cabinet reshuffle    Egypt's Sisi names 13 ministers in Cabinet reshuffle    Spain: prosecutor seeks 8 years sentence for Shakira over tax evasion    Egypt: Alamein Art Festival kicks off a collection of recycled installations    John Legend enjoys family trip in Egypt    Egypt's athlete Basma Emad wins bronze in weightlifting in Mediterranean Games    Noura Al-Mutair – first Gulf female boxer in World Championships    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    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 part of far-reaching discussions to support Egypt through COVID-19: Dario Scannapieco
EIB offers additional funding for medical supplies, equipment needed according to Egypt's crisis response
Published in Daily News Egypt on 29 - 04 - 2020

The European Investment Bank (EIB) has recently announced a comprehensive response to the coronavirus (COVID-19) pandemic outside the EU that will provide up to €5.2bn in the coming months.
The financing is an immediate fast-tracked support package designed to help sustain jobs and livelihoods in the sectors most threatened by the economic and social impact of the coronavirus. Daily News Egypt interviewed EIB Vice President Dario Scannapiecoo to better understand the how the Mediterranean region – particularly Egypt – will benefit from this finance.
In response to the COVID-19 pandemic, how will the EIB help Mediterranean countries?
The EIB is a key player in "Team Europe" led by the European Commission (EC) to provide and coordinate EU support to countries outside the union. Our approach to the COVID-19 response is based on two pillars: to strengthen health preparedness and resilience; and to support the real economy and the liquidity of public entities; banks; corporates; and micro, small, and medium enterprises (MSMEs), to ensure the resilience of investments, businesses, and populations.
The countries of the Southern Neighbourhood vary in terms of their economic situation and requirements. We are in continuous discussions with our counterparts in the Mashreq and Maghreb to assess their needs and prepare tailor-made responses. EIB's overall new financing in support of the COVID-19 response in the Southern Neighbourhood is expected to reach up to €2bn in 2020, of which at least €1.5bn would be dedicated to support small and medium enterprises, and €0.5bn to the public sector. In addition, the EIB is making all efforts to accelerate disbursements on existing operations where possible.
What impact does the COVID-19 have on the Mediterranean region?
The Covid-19 pandemic is a truly unprecedented shock to the world economy in terms of its unexpected magnitude, global spread, and interlinked demand and supply effects. Its epicentre has moved from China to Europe and the US. The virus' tragic human and economic toll will also impact the EU's Southern Mediterranean and Partner Countries as in the EU.
Economic activity will slow down because of lockdowns, travel restrictions and border closures, as well as higher rates of morbidity and mortality. Demand is plunging, production is being disrupted and investment plans are being put on hold. Lockdowns are hurting labour-intense service sectors, and affecting in particular countries where unemployment is already high. In addition, a number of economies will be hit by a decline in tourism and a reduction in remittances.
How should governments intervene to face these challenges?
There have been prompt responses to COVID-19 economic impact in the region. A number of countries have cut interest rates, and a number of central banks are providing payment holidays on facilities to commercial banks, introducing new liquidity facilities, or extending eligibility for existing facilities to critical sectors, such as healthcare. Some are mandating or "requesting" commercial banks to provide payment holidays to their clients, particularly the poor and MSMEs.
Despite these interventions, for many of these countries the trade-off between containment measures to stop the virus from spreading and the economic contraction that these measures will bring, poses a daunting challenge in light of already high public debt levels, and will require as much support as possible from the international community.
Countries have to cope with three main challenges related to COVID-19: an urgent need for medical and protective equipment and other relevant supplies, a medium to long-term need to reinforce their healthcare systems including hospital infrastructure, and an overall economic downturn limiting already narrow fiscal space and slowing future growth.
How about Egypt's Covid-19 response?
The Egyptian government has enacted a prompt response to COVID-19 and introduced together with the Central Bank of Egypt a number of measures to respond to the COVID-19 economic impact.
The EIB is part of a wide discussion led by the Ministry of International Cooperation with other international financial institutions, UN agencies, and development partners to establish how best the bank can support Egypt with new financing and existing credit lines, both in public and private sectors.
In the public sector, the EIB has for example offered additional funding for medical supplies and equipment needed according to the national crisis response plans. In addition, the bank continues to work on important public sector transport, energy, and water/wastewater projects, which remain crucial to ensure economic recovery and employment after the crisis.
In the private sector, the intervention of the EIB is focused on supporting corporates, in particular MSMEs whereby the bank's long-standing and successful partnership with the local banking sector will be built on to maximum effect. Funding and risk-sharing instruments are designed to enable the banks to continue and adapt their lending to the needs of the MSMEs in these times of crisis.


Clic here to read the story from its source.