Banque Misr recently signed a cooperation agreement with the Export Credit Guarantee Company of Egypt, for securing the proceeds of Egyptian exports to Egyptian exporters, owing to the Bank’s keenness on increasing the proceeds of Egyptian exports as an important source of foreign currency for achieving sustainable economic development and to enhance Egypt’s economic growth. Mr. Mohamed El-Etreby - Chairman of the Board of Directors of Banque Misr - signed the agreement with Mrs. Mervat Sultan - Chairman of the Board of Directors of Export Credit Guarantee Company of Egypt and the Egyptian Bank for Export Development - in the presence of Mr. Akef Al-Maghraby - Vice Chairman of Banque Misr - and Mr. Mohamed Azzam - Managing Director of CGC - on Tuesday, September 1st, 2020, at Banque Misr headquarters.
The agreement between Banque Misr and CGC aims to secure the proceeds of unconfirmed documentary LCs issued by banks around the world in favor of Egyptian exporters - who are clients of Banque Misr. The Bank considers it a top priority to provide financing services to exporters, in support of the state’s efforts towards increasing Egyptian exports in general; and to the African continent specifically. This agreement enables Banque Misr to diversify the mechanisms enhancing and supporting the capability of the Egyptian exporter in high-risk countries - such as Africa and Latin America - to enable expansion into these markets.
The signing of this agreement comes within the framework of the Bank’s implementation of a strategy aiming to expand into the African continent and to enhance the volume of its business there, whether through actual physical presence (branch / representative office), or by carrying out financial activities and international transactions performed via other financial institutions; being one of the tools supporting the Bank’s strategy. This coincides with the state’s interests and agenda, which prioritize positioning Egypt as an integral part of Africa, through full communication and collaboration in various development projects. Most important of these are the development and increase of cooperation and the volume of intra-regional trade with African countries, paving the way for Egyptian companies to enter new African markets and benefitting from the great diversification and high profit margins characterizing the large African market, thus increasing Egyptian exports to Africa.
Worth noting is that CGC is a company established by a special law issued by the President of the Republic in 1992 with the objective of supporting Egyptian exports. The company provides services to guarantee export earnings and helps Egyptian exporters to obtain financing for these operations. By providing this service, the company aims to diversify the mechanisms available to banks operating in Egypt to share export credit risks with reinsurance markets around the world, reflecting in the penetration by Egyptian exports of the various markets and minimizing the risks faced by exporters.
Banque Misr constantly strives to be a leading banking institution by offering enhanced services and maintaining its long-term success, together with actively participating in services that meet the needs of its customers. This is by forging partnerships and partaking in initiatives that meet those requirements. Accordingly, the values and business strategies of Banque Misr always reflect its commitment to sustainable development and achieving prosperity for Egypt.
