EGYPT – The Egyptian banking sector has received a great boost from the African Export-Import Bank (Afreximbank) to help it remain financially sound during a time when the COVID-19 is ravaging economies globally.
The boost from the Afrexim Bank comes in form of a US$3.55 billion financing which will be channeled to the Egyptian Banking sector under its Pandemic Trade Impact Mitigation Facility (PATIMFA).
“In its bid to strengthen long-term economic prosperity in the region, the Bank has also provided $300 million to the National Bank of Egypt to support activities aimed at expanding intra-African trade,” Afreximbank said.
PATIMFA is designed to assist Afreximbank member countries in managing the adverse impact of financial, economic and health shocks caused by epidemics or pandemics, in the nature of COVID-19.
By doing so, it helps preserve and promote economic stability through the period of global uncertainty.
Afreximbank explained that the funds ensure trade debt payments that fall due are honoured.
The funds according to Afreximbank are also used to support the stabilization of foreign exchange resources in order to preserve the flow of critical imports.
The bank clarified that this amount of money will bolster the liquidity of the Central Bank and Local Egyptian lenders during the crisis, while ensuring vital trade in items such as food and medical supplies continues.
“Faced with a sharp change in the economic outlook, banks in most countries, including Egypt, need to brace themselves for widespread economic disruption and a recession, President of Afreximbank Benedict Oramah.
Omah further noted that the support that his Bank providing to the banking system in Egypt will ensure trade continues and defaults are averted, bolstering the economic foundations needed to preserve public health and promote a strong recovery.
In addition, Afreximbank has also provided a $250,000 grant to support the Egyptian government COVID-19 relief efforts and has plans of investing some $2.3 billion in Egypt.
Established in 1993 by African governments and investors, African Export-Import Bank (Afreximbank) has been acting to stimulate a consistent expansion and diversification of African trade so as to rapidly increase Africa’s share of global trade.
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