Funding for SMEs support initiative amounts to about LE180B: CBE governor

CAIRO – 19 August 2020: The volume of funding for the initiative to support micro, small and medium enterprises amounted to about LE 180 billion, from which about 120,000 companies and 1 million borrowers benefited, in addition to the launch of savings certificates with an interest of 15 percent, Central Bank Governor Tarek Amer said in a presidency statement.

In June, CBE announced adding newly founded medium-sized enterprises and small companies that are affiliated with big entities to its LE 100 billion financing initiative to support the industrial, agricultural and construction sectors.

The Central Bank Governor stated Tuesday during a meeting with President Abdel Fatah al-Sisi, that all indicators reflected the ability of the Egyptian state to cross the repercussions of the coronavirus in order to maintain the stability of its financial and monetary indicators according to the figures and data of the balance of payments for 2019/2020, which witnessed stable exchange rates and inflation rates, compared to emerging countries.

Amer also reviewed what the banking system, represented in the banking sector, had done during the past period in light of the spread of the coronavirus pandemic, which succeeded in pumping a huge volume of liquidity into the local market to provide foreign and domestic cash, in addition to providing all the needs of the government sector to finance the development process.

 Amer pointed to doubling the volume of domestic loans during 2019/2020, compared to previous rates, as well as strengthening the role of the banking system in financing presidential initiatives.

The governor of the Central Bank confirmed that these results were achieved due to the strength of the Egyptian banking system and its enjoyment of high financial safety indicators that exceed the rates required for the counterpart countries at the global level, whether in terms of capital strength, liquidity and profitability, which was reflected in Egypt's recent success in the speed of concluding two financing packages with the International Monetary Fund without any requirements to fill any future financing gaps, the Spokesman for the Presidency Bassem Rady stated.

During the first half of 2020, Egypt reached two financing agreements with the International Monetary Fund (IMF). The first financial package which is amounted to $2.77 billion, came upon Egypt’s request according to the Rapid Funding Tool program (RFI). Moreover, IMF approved a 12-month Stand-by Arrangement for Egypt, with access equivalent to about $5.2 billion by the end of June.

IMF stated earlier that the Egyptian banking system has remained stable in light of the global fluctuations caused by the emerging corona virus pandemic.

Egypt's banking system remained stable during COVID-19 pandemic: IMF

CAIRO - 11 August 2020: The Egyptian banking system has remained stable in light of the global fluctuations caused by the emerging corona virus pandemic, according to the International Monetary Fund (IMF).

 

According to the Presidency statement, the strength of the banking system also contributed to achieving higher than expected economic growth rates compared to other emerging countries in the world, as a result of the country's successful economic reform strategy launched in 2016.