The Central Bank of Egypt (CBE) has decided to engage the contracting sector in a EGP 100 billion initiative, through giving loans at an 8 percent decreasing interest rate, aiming to support the manufacturing sector.

In a statement, the CBE said the decision is part of efforts to support vital sectors of the economy against the harsh impacts of the Covid-19 pandemic crisis.

The CBE added that the contracting sector is a key engine for manufacturing and services activities and involves a broad section of the workforce in the Egyptian market with annual revenues of EGP 50 million.

In December 2019, the CBE launched an initiative to support the industrial sector that afforded manufacturing and agriculture sector loans at a decreasing interest rate of 10 percent.

The CBE then began to engage more sectors as beneficiaries and adjusted the interest rate to 8 percent in order to contain the negative consequences of the Covid-19 crisis.

Total sums provided through CBE initiatives so far exceed EGP 700 billion, including EGP 360 billion to back the SME sector, EGP 100 billion to support the industrial and agricultural sectors, EGP 100 billion to support the real estate sector, with EGP 50 billion for real estate developers, and EGP 50 billion for real estate housing for the low income classes, in addition to number of initiatives to support the tourism sector, lift the debts of stalled factories, and postpone loan repayment installments.