CBE abolishes sales cap on beneficiaries of its EGP 100bn industry support initiative

Daily News Egypt
1 Min Read
It is expected that the MPC would make a decision to fix interest rates in the CBE, as it did before in February, April and June; says General Director of Treasury at the Industrial Development and Workers Bank of Egypt AFP Photo

The Central Bank of Egypt (CBE) cancelled the annual sales cap of EGP 1bn required to qualify for its EGP 100bn initiative aimed at supporting industrial, agricultural, and aquaculture production companies. The move comes in a bid to expand the base of beneficiaries, allowing medium-sized factories, whose sales exceed EGP 50m, access to subsidised loans.

The CBE said the decision came in view of the challenges caused by the ongoing coronavirus (COVID-19) pandemic and the expected economic and social impacts. The cap cancellation is also designed to strengthen the economy and reduce the burdens on large companies, enabling them to continue functioning whilst retaining their employees.

The CBE added that the decision aims to maximise the benefit of its initiative issued at the end of the previous year, which provides loans at an 8% interest rate through banks.

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