Egypt - Line of Credit to National Bank of Egypt

The present project on the Line of Credit (LOC) to National Bank of Egypt (NBE) was conceived on the background of the Government of Egypt’s economic reform program. It was designed to support the reform program, particularly the Governement’s resource mobilization efforts as well as its efforts to promote private sector initiatives and investments in the country and to create employment. It's a US$140 million LOC should provide long-term funding to NBE for on-lending to viable enterprises. The project should permit the bridging of the maturity gap between the demand for long-term loans and the available deposits in the Egyptian financial system. The loan is extended to NBE in foreign currency (US$), and repayment to the Bank should be done in the same currency. The NBE has the discretion, however, to on-lend part of the LOC resources to eligible enterprises in local currency when it's satisfied that the resulting foreign exchange risk is adequately covered.