Cairo, Egypt – The National Bank of Egypt (NBE) and Banque Misr, two prominent state banks in Egypt, are being considered for financial support through the Multilateral Investment Guarantee Agency (MIGA) under its trade finance guarantee (TFG) partnership with the European Bank for Reconstruction and Development (EBRD). MIGA, a member of the World Bank, may allocate up to $100 million in TFG to these banks as part of their co-financing agreement with the EBRD, as stated on MIGA’s website.
This potential support for the NBE and Banque Misr comes after the landmark co-financing agreement signed by MIGA and the EBRD in February. Under this agreement, MIGA will issue trade finance guarantees of up to $200 million to the EBRD, enabling the EBRD to participate in its Trade Facilitation Programme (TFP) with reduced risk.
Over a period of up to six years, the TFP-MIGA partnership will provide up to $200 million in guarantees and focus on supporting trade transactions facilitated through state-owned banks. More than 100 issuing banks across 26 countries are involved in the TFP-MIGA guarantees, enhancing trade flows and contributing to the economic development of emerging market nations.
These guarantees serve to bolster select markets by mitigating the risk of non-payment by state-owned banks. They play a crucial role in supporting trade activities, particularly in times of mounting economic pressures and geopolitical risks that impact trade, supply chains, and essential imports.
The potential provision of trade finance guarantees to the NBE and Banque Misr by MIGA, in partnership with the EBRD, signals a significant step towards strengthening Egypt’s trade landscape. This support will contribute to expanding trade opportunities, fostering economic growth, and addressing challenges faced by emerging markets.
