Afreximbank disburses $3.55bn to cushion COVID-19 impact in Egypt

The African Export-Import Bank (Afreximbank), says it has disbursed a total of 3.55 billion dollars to the Egyptian Banking sector in a bid to cushion the Coronavirus (COVID-19) impact in the region.

Prof. Benedict Oramah, the President of Afreximbank disclosed this in a statement issued on Wednesday in Abuja, saying that the disbursement started since the outbreak of the pandemic in March.

Oramah said that the gesture was to strengthen long-term economic prosperity in the region.

According to him, the 3.55 billion dollars support has been provided to the Central Bank of Egypt and other Egyptian Banks through Afreximbank’s Pandemic Trade Impact Mitigation Facility (PATIMFA).

“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.

“The funds will ensure trade debt payments that fall due are honoured and supports the stabilisation of foreign exchange resources in order to preserve the flow of critical imports.

“They 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 continue,” he said.

He further said that the Bank had also provided 300 million dollars to the National Bank of Egypt to support activities aimed at expanding intra-African trade.

“In addition, Afreximbank has also provided a 250,000 dollars grant to support the Egyptian government COVID-19 relief efforts.”

He noted that the support provided to the National Bank of Egypt reflected Afreximbank’s continued commitment to promoting regional integration and intra-African trade.

“An area of development it deems vital both to the continent’s recovery from the pandemic and its long-term economic resilience.

“The funds will support the National Bank of Egypt’s operational expansion through investment and trade in Africa.

“It will also strengthen its Egypt-Africa Trade business, which aims to increase its support for regional trade from 85 million dollars in 2020 to 125 million dollars in 2022,” Oramah added.

“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.

“The support we are 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.

“As we rightly focus on stability in the present, we must also look to build a more prosperous and resilient future.”

He said that Egypt had been a regional banking powerhouse for more than a century and would play a vital role in expanding intra-Africa trade as the continent recovers from the pandemic and reaps the benefits of the African Continental Free Trade Area.

“The National Bank of Egypt’s balance sheet is among the top three strongest in Africa and we are confident its expansion will prove an effective multiplier for trade across the continent,” he said.

The News Agency of Nigeria reports that the African Export-Import Bank (Afreximbank), is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. (NAN)