The Central Bank of Egypt (CBE) has extended its EGP 100bn initiative to both newly established medium-sized companies and small businesses affiliated with major entities.

The initiative was set up to provide loans at a decreasing interest rate of 8% to private sector companies in Egypt’s industrial, agricultural and contracting sectors.

The CBE said the decision ensures support for these companies and aid their growth through a reduced cost of borrowing, especially in light of the consequences of the coronavirus (COVID-19) pandemic.

The CBE elaborated that the initiative includes newly established companies that are classified as “medium-sized companies”. This is defined according to their paid-up capital until financial statements are available, based on their data classification on the size of their business.

The extension of the decision also includes small-sized companies affiliated to large entities and institutions or clients with high financial solvency.