Bank Audi-Egypt is reportedly in talks with two European development banks with a view to securing dollar liquidity and ensuring letter of credit (L/C) flows.

A lack of L/Cs has been a huge difficulty for Egyptian businesses since the 2011 ousting of former president Hosni Mubarak.

Ongoing negotiations

Bank Audi-Egypt (the country's eighth largest commercial bank) is in ongoing talks with the European Investment Bank and the European Bank for Reconstruction and Development, a banker reportedly told the Amwal Al Ghad business magazine.

The source said the Egyptian arm of Lebanon-based Bank Audi was seeking to secure US dollar liquidity and obtain access to finance that would enable the bank to meet local demand for L/Cs and loans.

L/C difficulties

The biggest difficulty faced by Egypt's importers is opening L/Cs according to a representative for the General Division of Importers at the Federation of Egyptian Chambers of Commerce (DC World News, 27 April 2015).

Egypt's vehicle agents and distributors are amongst many types of business that have been badly affected by a shortage of foreign exchange and L/Cs (DC World News, 21 August 2015).

Amwal Al Ghad is a monthly business news magazine covering Egypt's banks, stock market and wider financial services.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.