ABG Egypt-World Bank to offer micro finance in EgyptIn line with the Bahrain-based Al Baraka Banking Group’s strategy to enhance the role of its subsidiaries in the economic development of the counties, where it operates, signed an agreement with the World Bank for micro financing in Egypt.
ABG said that the move would help in the development and revitalization of the economy of Egyptian market Al Baraka Bank Egypt.
“ABG aims to expand the finance to small projects as this vital and important sector become today the highest priority for countries and international financial institutions due to the bloated problem of unemployment,” ABG in a statement said.
Al Baraka Bank Egypt, under the auspices of Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group and Chairman of Al Baraka Bank Egypt, signed the first Islamic partnership contract to finance small projects with the Social Fund through the World Bank.
The contract was signed by both Ghada Walli, the Secretary-General of the Social Fund for Development and Ashraf Ghamrawy Vice Chairman and Chief Executive Officer of Al Baraka Bank Egypt, in order to finance new and existing small projects though Islamic partnership.
The signing ceremony was attended by Oinger Anderson World Bank Vice President for the Middle East, Craig David Director of National Affairs of Egypt, Dr Sahur Nasr, a leading financial economist for the Middle East and North Africa, World Bank and the leaders of Al Baraka Bank Egypt and Social Fund for Development.
The total amount of the contract is EP 200 million, divided equally between the Social Fund for Development through funding from the World Bank and Al Baraka Bank Egypt.
The amount of the partnership contract will be directed to finance new and existing small projects and to support these projects for development, expansion, replacement and renewal through the provision of finance of all forms of Islamic products for the establishment of projects that provide permanent and temporary jobs that help boosting production and raise income for broad segments which would yield a positive economic and social contribution to the recovery of development, especially in light of current circumstances of the country. The uses of funds is vary and cover the financing of machinery, new spare parts and working capital for existing projects, with the possibility of financing the purchase of machinery and equipment used, and includes also the financing of medical centers, clinics, pharmacies, doctors and pharmacists.
It is expected that this contract will contribute to the establishment of approximately 4400 projects and provides more than 22,000 job opportunities.
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