Banque Misr signed a loan agreement Sunday worth $250m with a banking alliance led by the Arab Banking Corporation-Bahrain (ABC-Bahrain), according to Chairman of Banque Misr Mohammed El-Etreby.
He told Daily News Egypt this loan aims to boost the bank’s dollar liquidity and help in meeting clients’ requirements for foreign currency.
According to El-Etreby, the loan interest rate was estimated at 3.2% above the dollar LIBOR interest rate. The loan maturity is three years. The LIBOR interest rate is the loan interest rate of banks on the London market.
The list of banks participating in this loan includes ABC-Bahrain, the National Bank of Dubai (NBD), Mashreq Bank, Union National Bank Egypt, and HSBC. Banque Misr has been negotiating with these banks since last June.
Governor of the Central Bank of Egypt (CBE) Tarek Amer urged banks operating in the domestic market to help him overcome the dollar shortage crisis in the Egyptian market. This crisis recently escalated due to the severe decline of foreign currency resources.