Egypt - Line of Credit II

The present project is the second Line of Credit (LOC) in the series of credits granted by the African Development Bank (ADB) to the Development Industrial Bank (DIB). This LOC aims: (1) to provide DIB with foreign exchange resources needed to finance private industrial projects, while at the same time playing a catalytic role by facilitating DIB's external resource mobilization efforts from other sources; and (2) to strengthen DIB's institutional capabilities, particularly in the areas of financial and economic appraisal of its investments/ Loans, by making comments on sub-projects prior to ADB approval. This LOC is designed because the Government is convinced that increased public assistance to the private industrial sector is in the best interests of the Egyptian economy and people. In addition, DIB is the main development finance institution providing mainly long and medium term investment finance to small and medium scale industrial enterprises, most of which are privately owned. The role of DIB is to support private initiatives with special emphasis on the small and medium size industries and related activities.