BNP Paribas and USAID support microfinance in Egypt
BNP Paribas Bank has a three-year loan agreement worth €3.5 million with the Lead Foundation to support small and micro enterprises in Egypt.Co-guaranteed by BNP Paribas and the US Agency for International Development (USAID), the loan is expected to provide microfinance loans to more than 400,000 borrowers, with as much as €3,000 available to each borrower.
Pierre Delhaise, Deputy Managing Director of BNP Paribas Egypt, said: "BNP Paribas Egypt has been financing microfinance institutions since 2006 with a focus on productive projects to ensure a positive and constructive impact on the community and to encourage economic growth. The group has allocated a specific envelope for microfinance that is worth €100 million."
This loan will be used to finance sustainable projects, which will be assessed by the Lead Foundation to ensure that they will benefit to the development of the community.
The USAID/Egypt Micro and Small Enterprises Development programme was created in 1990. Most clients have a low income and are located in economically disadvantaged areas.
Eleven microfinance institutions and two banks are implementing microcredit activities as part of this programme.