The Agricultural Bank of Egypt (ABE) announced an increase in agricultural credit categories by 25% to support small-scale farmers in the face of price hike of production and operating inputs.
Alaa Farouk, the Chairperson of the ABE, said that the Bank has taken these urgent measures to keep pace with the current global and local changes in an attempt to mitigate the effects of the global rise in the prices of commodities and production requirements, especially in the agricultural sector. This step will support small-scale farmers and rural residents, who represent more than 60% of Egyptians.
He pointed out that these measures are aimed at reinforcing the efforts of the state to maintain the performance of the Egyptian economy and meet its needs. This step is in implementation of President Abdel Fattah Al-Sisi’s directives to all state institutions to take the necessary measures to relieve the burden on citizens’ backs. They are also within the framework of CBE’s initiatives.
Farouk stressed that the segment that benefits the most from the increase in the credit categories approved by the Bank by 25% are farmers and small-scale farmers. This will help them bear the price increase so their ability to produce continues. This eventually supports the agricultural sector and Egyptian farmers to enhance their overall living conditions. Farouk noted that the bank has been keen to speed up issuing the decision, in close cooperation with Elsayed Elkosayer, Minister of Agriculture.
Farouk said that agricultural funding loans are expected to increase over the coming period with the aim of expanding the base of beneficiaries of agricultural loans. He stressed that the bank pumped about EGP 12bn to finance agricultural loans during the period extending from mid-June 2020 to late December 2021.
He explained that the bank grants agricultural loans with a subsidized interest of 5% to support small-scale farmers in coordination with the relevant government agencies at the Ministry of Agriculture.