CAIRO - 18 January 2023: The Egyptian Cabinet approved the general framework of the new initiative to support the productive sectors (industry and agriculture).
According to a statement issued, Wednesday, the initiative aims to reduce the interest rate on loans provided to the industrial and agricultural sectors, within the framework of continuous support for these sectors and their activities.
The initiative included providing about LE 150 billion, of which approximately LE 140 billion is to finance working capital operations, and about LE 10 billion to finance the purchase of capital goods.
The proposed period for the initiative is five years, starting immediately after its approval by the Cabinet.
The statement indicated that the volume of credit available to each company is determined in light of the size of its business and the regulating banking rules, provided that the maximum limit allowed for each company does not exceed the amount of LE 75 million, and about 150 percent of the maximum limit for associated customers, provided that the transactions of each company are with a maximum of two banks participating in the initiative.
The companies joining the initiative will bear a reduced interest rate of 11 percent, provided that the Ministry of Finance bears the difference in the interest rate.
It is prohibited for any customer to use any of the available credit available under this initiative to pay any other due debts on the date of implementation of this initiative or during its implementation to the banking sector.
The implementation mechanisms of the initiative are put in place in coordination between the Ministry of Finance and each of the Central Bank of Egypt (CBE), the Ministry of Trade and Industry, the Ministry of Agriculture and Land Reclamation, and other concerned parties.
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