The UK-based European Bank for Reconstruction and Development (EBRD) recently revealed the pending approval of a finance facility of up to USD 100 million for the National Bank of Egypt (NBE), which is wholly owned by the Egyptian government. If approved by the EBRD board, the facility would consist of two loans: 1) up to USD 50 million for on-lending to micro-, small and medium-sized enterprises (MSMEs) on a basis described as “medium-term” [1]; and 2) up to USD 50 million for trade finance activities including guarantees and cash advances intended to promote trade and economic development in Egypt and the surrounding region [2]. EBRD would provide technical assistance relating to MSME lending and trade finance
As of June 2012, NBE reported total assets of EGP 322 billion (USD 46 million) [3], total loans of EGP 102 million (USD 14.5 billion) [4] and deposits of EGP 279 billion (USD 40 billion) [5]. Information on the number of customers, return on assets (ROA) and return on equity (ROE) are unavailable.
The MSME facility would be EBRD’s first project in the Egyptian financial sector. Since EBRD began operations in Egypt in September 2012, it has invested USD 37 million in 2 projects in that country, both in the environmental sector [6].
By Jennifer Young, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects.
About National Bank of Egypt
Founded in 1898, the National Bank of Egypt (NBE) is a commercial bank wholly owned by the Egyptian government. As of June 2012, NBE reported total assets of EGP 322 billion (USD 46 million), total loans of EGP 102 million (USD 14.5 billion) and deposits of EGP 279 billion (USD 40 billion). Information on the number of customers, return on assets (ROA) and return on equity (ROE) are unavailable.
Sources and Additional Resources
[1] European Bank for Reconstruction and Development Project News,”National Bank of Egypt SME Credit Line,” http://www.ebrd.com/pages/project/psd/2013/44442.shtml
[2] European Bank for Reconstruction and Development Project News, “Regional TFP: National Bank of Egypt,” http://www.ebrd.com/pages/project/psd/2013/44439.shtml
[3] National Bank of Egypt, “Financial Statement,” http://www.nbe.com.eg/en/pdf/Financial%20Statement%20at%2030%20June%202012.pdf
[4] National Bank of Egypt, “Loans and Advances,” http://www.nbe.com.eg/en/pdf/Loans%20and%20Advances%20as%20at%20June%2030.pdf
[5] National Bank of Egypt, “Deposits,” http://www.nbe.com.eg/en/pdf/Deposits%20as%20at%20June%2030%20.pdf
[6] European Bank for Reconstruction and Development Country Factsheets, “Egypt,” http://www.ebrd.com/downloads/research/factsheets/egypt.pdf
MicroCapital Story, June 6, 2013, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), European Investment Bank (EIB), Agence Française de Développement (AFD), European Commission Establish $380m Middle East, North Africa Small, Medium-Sized Enterprises Facility,”
MicroCapital Story, February 16, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $2m to Microfinance Institution Palestine for Credit and Development,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-loans-2m-to-microfinance-institution-palestine-for-credit-and-development/
MicroCapital Story, February 5, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME to Loan $20m to Lebanon’s Bank Audi for Small and Medium-sized Enterprises in Middle East, North Africa,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-to-loan-20m-to-lebanons-bank-audi-for-small-and-medium-sized-enterprises-in-middle-east-north-africa/
MicroCapital Story, September 27, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Works With African Development Bank, Islamic Development Bank to Plan Expansion to Support Emerging Arab Democracies,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-works-with-african-development-bank-islamic-development-bank-to-plan-expansion-to-support-emerging-arab-democracies/
MicroCapital Universe Profile: National Bank of Egypt, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+Egypt
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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