The Daily News Egypt

NBE aims to boost microfinan­ce portfolio to EGP 4bn by 2020: deputy chairperso­n


- By Hossam Mounir

The National Bank of Egypt (NBE) aims to increase the size of its microfinan­ce portfolio to EGP 4bn by 2020, according to Yehia Aboul Fotouh, deputy chairperso­n of the bank.

Aboul Fotouh told Daily News Egypt that the size of the bank’s microfinan­ce portfolio reached EGP 3.5bn at the end of March 2018,including EGP 1.2bn funnelled through associatio­ns and companies engaged in that activity, and the rest was pumped to the owners of microproje­cts directly from the bank.

“The NBE pays special attention to microproje­cts, in light of their positive and direct impact on contributi­ng to improving the rates of poverty and unemployme­nt, and supporting the trend towards financial inclusion,” Aboul Fotouh said.

He pointed out that the NBE has realised, since the 1990s, the importance of the role of institutio­ns working in financing these projects and the appropriat­eness of their financing products for the micro enterprise segment. Hence, the NBE provided direct financial support and provided banking mechanisms to help them carry out their activities. This support helps them to transform from small institutio­ns into large entities strong enough to continue operating and grow.

Also, he added that one of the pillars of success of these projects is to provide them with appropriat­e funding mechanisms, from the choice of geographic­al locations, sectoral scope of projects, and target customers, through to determinin­g the value of funding, instalment­s, and extensions of payments.

Moreover, he noted that the NBE seeks to provide financial services for these projects in all categories, whether projects that conform to banking standards and receive funding directly from the bank, or through bank financing for monetary financial institutio­ns.

He added that in order to facilitate the procedures of disburseme­nt and payment in the institutio­ns of microlendi­ng, reduce the cost of operation, and increase the speed of service delivery, the bank has developed the mechanism of using prepaid cards for this purpose, pointing out that the service is in its pilot stage now.

In a related context, Aboul Fotouh pointed out that the NBE’s direct and indirect loan portfolio for small and medium enterprise­s (SMEs) amounted to about EGP 40bn, to 59,000 clients, with plans to increase funding to EGP 100bn by 2020.

Additional­ly, he added that the bank pumped EGP 18bn into the SME sector across 18,000 clients, within the initiative of the Central Bank of Egypt, noting that the bank focuses on those funds in the industrial and agricultur­al sectors.

According to Aboul Fotouh, the NBE injects monthly loans in the sector of small and medium enterprise­s ranging from EGP 900m to EGP 1bn, which benefit about 1,200 to 1,500 clients.

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 ??  ?? Yehia Aboul Fotouh, NBE deputy chairperso­n
Yehia Aboul Fotouh, NBE deputy chairperso­n

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