IFC provides up to $100 million loan to Egypt’s CIB bank to support businesses affected by COVID-19

IFC, a member of the World Bank Group, announced a loan of up to $100 million to Commercial International Bank (CIB), Egypt’s largest private bank, to help the bank increase support to clients and companies whose cash flows have been disrupted by the COVID-19 pandemic.

The loan is IFC’s first in the Middle East and North Africa through its COVID-19 fast-track financing facility. The funding will help CIB, a longstanding partner of IFC in Egypt, provide short-term loans to both corporations and businesses, including small- and medium-sized enterprises (SMEs) facing liquidity challenges.

IFC’s loan to CIB is part of an $8 billion global fast-track financing facility, announced in March, to support businesses and preserve jobs in the face of COVID-19. Close to 300 clients have requested support globally through the program. Economic growth in Egypt is expected to be undermined by COVID-19. Key sectors, such as tourism and natural gas, have experienced a slowdown due to restricted international travel and the crash in oil prices.

“Access to finance for thousands of smaller enterprises in Egypt is crucial during this COVID-19 crisis,” said Walid Labadi, IFC’s country manager for Egypt, Libya, and Yemen. “IFC’s support for CIB, Egypt’s largest private bank, will help ensure a continuous flow of financing and will support a quicker recovery for businesses.”

Egypt is a priority country for IFC in the Middle East and North Africa. IFC’s commitments in Egypt since 2005 total $4 billion, including financing mobilized from other investors. IFC also has an active portfolio of 15 advisory projects.

Original source: IFC
Published on 05 July 2020