Egypt- Line of credit pour Export Development Bank of Egypt

The present project concerns a Line of Credit (LOC) to the Export Development Bank of Egypt (EDBE). This line of credit to EDBE is for financing export-oriented projects in the sectors of industry, tourism and services in Egypt. It's initiated because poverty alleviation through employment generation requires considerable investment in productive sectors, particularly private-owned and export-oriented production. So, the LOC should finance sub-projects in the productive sectors and in some few service sub-sectors in Egypt. It should also support sub-projects that are private, export-oriented and produce goods for export. The sub-projects to be selected are foreign exchange earning and, in most cases, resource-based. The LOC should provide medium to long-term sub-loans to enterprises in sectors of (i) industry; (ii) tourism; and (iii) services that support exports. A selected sub-project must be financially viable with a financial rate of return that should exceed the opportunity cost of capital of the sub-loans plus a risk premium.