Egypt - SME Support Project - Second Line of Credit to National Bank of Egypt

The Second Line of Credit to National Bank of Egypt (2nd LOC Nbe), in the amount of US$150 million, is designed to provide long-term funding to NBE for on lending to viable industrial enterprises in the country. This second Line of Credit (LOC) seeks to build on the achievements of the first LOC and provide financial resources to NBE for the financing of viable investment projects in the industrial, tourism and services sectors of the Egyptian economy. By so doing, the project would assist in bridging the maturity gap between the demand for long-term loans, and the available deposits in the financial system to provide such loans. The loan would be provided to NBE in foreign currency (US$), with repayment in the same currency. The NBE could however, at its discretion, on-lend part of the LOC resources to eligible enterprises in local currency if it is satisfied that the resulting foreign exchange risk will be adequately mitigated.