African Development Bank Grants $148 Million Loan to CIB for SME Support and Trade Enhancement

African Development Bank Grants $148 Million Loan to CIB for SME Support and Trade Enhancement

By Staff Writer, 02 December 2023

The African Development Bank (AfDB) has extended a financial package amounting to $148 million to the Commercial International Bank (CIB) with the aim of supporting small and medium enterprises (SMEs) and facilitating trade in Egypt.

Breaking down the financial assistance, the package includes a $10 million line of credit with a tenor of 10 years, a $90 million subordinated loan also with a tenor of 10 years, a $32 million trade finance line of credit lasting 3.5 years, and an additional $16 million trade finance line of credit from the Africa Growing Together Fund (AGTF) with a 3.5-year tenor.

Recognizing the challenging economic conditions in Egypt, characterized by a shortage of foreign currency stemming from factors such as the COVID-19 pandemic and geopolitical conflicts, this financial injection is strategically targeted to help CIB meet the foreign currency requirements of its clients across various sectors of the Egyptian economy.

The AfDB underscored that this comprehensive package is designed to furnish CIB with long-term resources, fortify its capital position, and empower the bank to effectively address the trade finance needs of its clients.

The primary beneficiaries are anticipated to be small and medium-sized enterprises (SMEs) and corporations operating in key sectors of the Egyptian economy.

With an optimistic outlook, the AfDB foresees this financial support playing a pivotal role in mobilizing substantial resources for vital economic sectors in Egypt.

The overarching goal is to enhance productive capacity, stimulate growth, boost competitiveness, and generate fiscal and export revenues.

Additionally, there is a strong emphasis on creating employment opportunities, particularly for women, as part of the broader socioeconomic impact expected from this initiative.

Source: Business Today

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