The Central Bank of Egypt (CBE) issued, on Monday, the guiding principles for sustainable financing.
The principles will provide the basis for planning and laying out the general framework for applying sustainable financing in Egyptian banks. They will also help build capacities, and provide the necessary resources to implement these principles.
Sustainable financing refers to financing projects at banks that take into account the environmental component of society, such as clean and renewable energy projects.
They also take into account projects that cover the social component of micro, small, and medium industry projects. This is in addition to labour-intensive projects that create more job opportunities, work to reduce poverty rates, and raise the quality of living.
The application of the sustainable financing principles will lead to enhanced investment opportunities and the injection of more foreign currency to Egypt.
This will occur by attracting a new segment of investors who are focused on sustainable financing, in addition to attracting foreign direct investment (FDI) in the banking sector and the national economy.
The principles are an important step in supporting Egypt’s development efforts and the country’s plans to achieve sustainable growth in all fields.
They will also provide the necessary funding for projects that contribute to achieving the sustainable development goals (SDGs) that Egypt is focusing on.
