Union National Bank-Egypt aims to increase loans provided to small- and medium-sized enterprises (SME) to 8% by the end of 2016.
The bank told Daily News Egypt that it has developed a specific strategy through which it aims to increase finances provided to these projects to 20% of its total loan portfolio over the next four years, which is in line with the initiative launched by the Central Bank of Egypt (CBE) in January 2016 to support the SMEs sector.
The bank has completed the classification of SMEs and very small businesses according to the unified definition set by CBE for this type of project.
The bank owns a department specialised in financing these projects; it is supplied with high-quality staff with great competence and expertise. The staff receive ongoing trainings to improve performance, according to the bank’s statement.
“The bank has ambitious plans to expand in financing this sector and it aims to reach diverse social classes as well as attract new clients, as it believes that supporting such projects plays a major role in directly enhancing economic development,” the bank added.
UNB-Egypt recently launched a promotional campaign to attract new clients who want to establish SMEs and loans, for a period of five years with a tapering interest rate of 5%, under the title “Your project, our financing”.
The campaign is part of previous initiatives adopted by the bank to develop these SMEs as part of its belief in the importance of the sector which it considers a tool for growth of any country’s economy.
The bank added that it has launched several programmes to finance these projects in collaboration with the Social Fund for Development. It has also sponsored multiple private programmes that aimed to spread awareness about the basics of starting-up SMEs.
The bank noted that these programmes offered advice to those interested in establishing such projects. They included tips on performing feasibility studies and ways to manage their projects successfully.
The bank has also launched campaigns to train young investors through a team of experts specialised in marketing, management, and human development.
The bank expects that CBE’s initiative to support SMEs will be a great success. It also expects it to positively influence the growth of SMEs in the Egyptian market, and the state’s economic situation in general.