The International Finance Corporation (IFC) signed an agreement on Tuesday with the Commercial International Bank (CIB) to fund it with $100m.
This funding is considered the first supporting loan provided by the IFC to a local bank. This came after the recent regulations approved by the Central Bank of Egypt (CBE) allowing international finance institutions to support the capital base of local banks and enhance the loaning processes in them.
Mouayed Makhlouf, the regional director of the IFC in the Middle East and North Africa (MENA), said that the IFC aims to support the companies listed on the EGX to improve the disclosure processes and develop regulatory standards.
He explained that the IFC is implementing an advisory services programme to enhance the ability of finance institutions and governments, as well as companies in the private sector, to improve governance standards and partnerships between the private and public sectors.
He pointed out that his corporation feels committed to offering technical aid to the Egyptian government to achieve governance and transparency in the capital market, which will eventually attract more investments and stimulate economic growth.
Makhlouf said that the countries that pay attention to transparency procedures and presentation of information provide their companies with a larger chance to grow, compared to countries that do not pay attention to governance and transparency, as proved by the IFC’s experience of investing in developing countries.
Minister of Investment and International Cooperation Sahar Nasr said that the government supports and encourages the private sector to take part in developing the economy as a main partner in development.
Infrastructure, energy, education, and health projects are considered the government’s top priorities, according to Nasr.
She expressed her enthusiasm about the upcoming period witnessing more cooperation between Egypt and the IFC to support the private sector.
She explained that the implementation of the economic reform programme and targetting support comes within the procedures to enhance the business climate and create a stable economic environment. Approving the investment law is also a positive step that took into consideration the different problems that occurred in the market.