(MENAFN- Daily News Egypt) Commercial International Bank (CIB) and the European Bank for Reconstruction and Development (EBRD) have signed a €50m credit risk guarantee agreement aimed at supporting small and medium-sized enterprises (SMEs) in Egypt. The agreement will see the EBRD cover 50% of the credit risk associated with a €50m portfolio of SME loans facilitated by CIB.

The initiative also benefits from a guarantee provided by the European Union under the European Fund for Sustainable Development Plus (EFSD+). This funding mechanism is designed to mitigate the financial risks involved in lending to smaller companies and stimulate economic growth in Egypt.

CIB, Egypt's leading private-sector bank, was selected for its extensive banking network and significant role in strengthening the Egyptian financial sector. The bank offers a wide range of products and services to its customers.

Amr El-Ganainy, CIB's Deputy CEO and Executive Board Member, commented on the partnership:“Our partnership with the EBRD marks a pivotal moment in our commitment to empowering SMEs. This strategic alliance with the EBRD is a catalyst for economic growth in Egypt and we are proud to be at the forefront of this initiative and contribute to a more prosperous future for Egypt.”

Rashwan Hammady, CEO of Retail Banking & Financial Inclusion at CIB, added:“We are pleased to advance our partnership with EBRD, as this risk sharing agreement underscores our commitment to empowering SMEs. Through improving access to finance, we enable companies to innovate, grow, and positively contribute to Egypt's economic prosperity. CIB is proud to support the next generation of entrepreneurs, helping cultivate a thriving entrepreneurship ecosystem.”

Egypt is a founding member of the EBRD. Since the bank began operations in the country in 2012, it has invested over €12.5 billion in 187 projects across various sectors. These investments have encompassed agribusiness, financial services, and infrastructure projects in areas such as municipal water, power, wastewater, and transport.

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