The National Bank of Egypt (NBE) has signed a US$50 million agreement with the European Bank for Reconstruction and Development (EBRD) aimed at improving letter of credit (L/C) access for small- and medium-enterprises (SMEs).

The agreement is part of a US$100m package of credit facilities agreed by EBRD and Egypt's oldest and largest bank.

Allocations

The banks have allocated half of the US$50 million to provide foreign currency for NBE clients to finance imports and exports at a competitive rate for up to three years.

The remaining US$25m aims to guarantee NBE obligations in international trade operations, including L/Cs as well as other instruments.

Benefits

The agreement aims to bolster the country's SME sector, create new jobs and boost exports in support of the Egyptian economy.

The deal is part of the Egyptian bank's drive to strengthen relations with international financial institutions and diversify funding sources for the bank's activities and products.

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