The European Bank for Reconstruction and Development (EBRD) announced enhancing its support for Egyptian exporters and importers with a $ 50 million trade facility to the Arab African International Bank (AAIB) Egypt.
“AAIB is the fifth-largest bank in Egypt. The bank has market shares of 4.2 percent, 4.6 percent and 4.4 percent in terms of total assets, loans and deposits, respectively,” EBRD noted in a statement.
EBRD clarified that this step comes as part of the EBRD’s Trade Facilitation Program (TFP).
As per the trade facility, the EBRD will issue guarantees in favor of international commercial banks covering the political and commercial payment risk of the transactions undertaken by AAIB, and will provide financing for export and import transactions, according to the statement.
“The EBRD will also provide technical assistance to support the training of AAIB staff working in trade finance,” the statement read.
Trade Facilitation Program (TFP) was launched in 1999, aiming to promote foreign trade to, from and among the economies where the EBRD invests.
EBRD noted that through TFP it provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors.
“The TFP currently includes over 100 partner banks in 29 economies where the bank invests, with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide,” EBRD stated.
EBRD has invested over €4.5 billion in 87 projects in Egypt so far, in addition to providing technical assistance to more than 750 small and medium-sized local enterprises, as Egypt is a founding member of the EBRD and has been a country of operations since 2012.