|Approval Date||12 Oct 2005|
|Signature Date||21 Nov 2005|
|Planned Completion Date||30 Jun 2010|
|Last Disbursement Planned Date||30 Jun 2010|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||24030|
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.
The objective of the LOC is to assist the development of the industrial and tourism sectors in Egypt by providing financial resources to NBE for on lending as medium and long-term loans to viable investment projects in these sectors, with focus on SMEs. By providing long-term foreign currency funding to NBE, the LOC will have the subsidiary objective of addressing one of the major constraints of the financial sector in Egypt, that of the lack of long-term investment capital.
The direct beneficiary of the Line of Credit is the National Bank of Egypt (NBE). Indirect beneficiaries are small and medium-sized enterprises.
African Development Bank
Banque Nationale d'Egypte ( National Bank of Egypt- NBE)
|Last Update||15 May 2021|
|Name||SEKIOUA Sofiane Hicham|