Egypt’s banks provided EGP 253 bln in finances for industrial, agricultural, construction sectors by end-December: CBE

Doaa A.Moneim , Thursday 24 Feb 2022

Egypt’s banks extended finances worth EGP 253 billion to about 8,800 beneficiaries in the industrial, agricultural and construction sectors by the end of December 2021, according to the Central Bank of Egypt’s (CBE) data published by MENA.

CBE

The beneficiaries included big and medium-sized enterprises whose businesses exceed EGP 50 million for each, in addition to startups and small firms affiliated to big ones.

The finances were extended under an initiative launched by the CBE in 2019 to support the industrial sector through providing loans with a decreasing interest rate of 10 percent. The CBE included the agriculture and construction sectors to the initiative in 2020 to support them amid the pandemic crisis, reducing the interest rate to 8 percent.

The data showed that these finances were provided as short and long-term credit facilities as well as in capital finances for those firms for funding purchasing production supplies, equipment, materials and financing their production lines for the sake of raising those firms’ productive capacities.

Since the onset of the pandemic, the CBE launched new initiatives as well as extending the coverage of current ones to include more sectors in a bid to alleviate the negative impacts on the businesses and to protect the national economy against these implications.

Last week, the CBE launched a brand-new initiative that aims to guarantee import operations through covering its related risks by issuing letters of credit from banks. The move also came to streamline the process of importing goods into the Egyptian market.

Accordingly, importers must submit letters of credit to their imported commodities – as of 22 February ­– instead of opening a documentary credit.

 

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