NBE and Egypt and Co-operative Insurance Society Egypt Forge Partnership to Safeguard Small and Micro-Sized Projects

National Bank of Egypt and Co-operative Insurance Society Egypt have signed a contract to cover the risks of non-payment for credit granted to small, medium, and micro-sized projects.

Yehia Abou El Fotouh, Deputy Chairman of the Board of Directors of the Egyptian National Bank, and Yahya Al-Ajmi, Chairman of the Board of Directors of the Egyptian Cooperative Insurance Association, attended the signing.

The contract was signed by Saad Mohy El-Din, Head of Small and Medium Projects at the Egyptian National Bank, and Mustafa Abu Al-Azm, Managing Director of the Egyptian Cooperative Insurance Association.

Yehia Abou El-Fatouh stated that this contract continues the longstanding cooperation between the bank and the association, spanning over 25 years, providing comprehensive insurance coverage for small, medium, and micro-sized projects funded by the bank.

 The contract includes various facilitations and adjustments to enhance the service efficiency for small, medium, and micro-sized projects. Mustafa Abu Al-Azm emphasized the association's commitment to providing the best insurance service in accordance with the contracting conditions and the Financial Regulatory Authority's instructions.

The contract covers the risks of non-payment for credits extended to small, medium, and micro-sized projects in various economic sectors, including agricultural, industrial, commercial, and service sectors, for legal entities such as individuals, companies, or freelancers, up to a maximum of EGP108 mn. This represents one of the highest insurance coverage values in the Egyptian insurance market, attributed to the association's financial and technical performance and the trust of insurance policyholders.

Tarek Hassan, Head of Small and Medium Projects Group, confirmed that this collaboration aligns with the bank's efforts to support small, medium, and micro-sized projects by providing insurance coverage for projects that demonstrate their economic viability and require such insurance coverage to secure the necessary financing.

The direct and indirect portfolio of small and medium projects at the bank amounted to approximately EGP157 bn for 129,000 clients. Saad Mohy El-Din mentioned that Egyptian National Bank was the first bank to collaborate with the association since its establishment in 1998.

The bank's transactions with the association have continuously grown, with the work processes being developed to adapt to market conditions. As part of this collaboration, the risks of non-payment for funding provided under the agreements between the bank and the Egyptian Projects Development Authority have been covered, totaling more than EGP 15 bn, in addition to other funding outside the projects development program.