Egyp­tian Agri­cul­tural Bank signs con­tract with MSMEs for EGP 250m

The con­tract aims to fi­nance 23,000 new and ex­ist­ing projects to pro­vide 4,600 jobs in the sec­tors of agri­cul­ture and live­stock

The Daily News Egypt - - Front Page - By Hos­sam Mounir

El Sayed El Kosayer, the chair­per­son of the Egyp­tian Agri­cul­tural Bank (EAB), signed a con­tract with Nevine El Gamea, the chair­per­son of the Mi­cro, Small, and Medium En­ter­prise De­vel­op­ment Agency (MSME) to ob­tain EGP 250m worth of fi­nanc­ing.

Ac­cord­ing to El Kosayer, the con­tract aims to fi­nance new small projects, whether in the sec­tor of live­stock, agri­cul­ture, and ir­ri­ga­tion sys­tems.The con­tract in­cludes pur­chas­ing new and used ma­chin­ery, in ad­di­tion to work­ing cap­i­tal.

The con­tract aims to fi­nance the fa­cil­i­ties and build­ings as well as the preparations nec­es­sary for the projects within the agri­cul­tural field and the sec­tor of de­vel­op­ing live­stock as well as all the ac­tiv­i­ties re­lated to them and all the ir­ri­ga­tion sys­tems ap­proved by the state.

El Kosayer pointed out that the bank owns a net­work of 1,210 branches in sev­eral cities and vil­lages across dif­fer­ent gov­er­norates. This en­ables the bank to reach all the tar­get consumers every­where across the coun­try.

Ac­cord­ing to El Kosayer, about 75% of the vol­ume of the loan port­fo­lio in the bank is ded­i­cated to mi­cro, small, and medium en­ter­prises, and about 25% of the loan port­fo­lio is ded­i­cated to fi­nanc­ing women.

El Kosayer pointed out that the num­ber of the bank’s clients is ap­prox­i­mately 3 mil­lion. There is a plan to add about 4 mil­lion oth­ers over the up­com­ing pe­riod to take the num­ber of the bank’s clients to 7 mil­lion.He also pointed out that the bank has the ca­pac­ity to serve about 40% of the to­tal num­ber of Egyp­tian cit­i­zens in Egypt, es­pe­cially fol­low­ing the plan to de­velop and re­struc­ture the bank.

Ac­cord­ing to El Gamea, the con­tract will help fi­nance 2,300 new and ex­ist­ing projects, which will even­tu­ally pro­vide 4,600 per­ma­nent and tem­po­rary job op­por­tu­ni­ties to the own­ers of these projects.

Nevine El Gamea added that this con­tract is only one in sev­eral that the agency re­cently signed with the EAB, which re­flects the confidence of the agency in EAB’s abil­ity to achieve de­vel­op­ment goals.

El Gamea re­vealed that the in­ter­est rate on these loans will be a de­clin­ing 10%. She stressed that this is a very suit­able in­ter­est rate com­pared to the lend­ing price in the mar­ket. In ad­di­tion, the speed of pro­vid­ing fi­nanc­ing and the sup­port by the bank and the agency to those who re­ceive loans is much more im­por­tant than the in­ter­est rate.

Newspapers in English

Newspapers from Egypt

© PressReader. All rights reserved.