Regulatory Alerts2022-04-05
Circular dated April 5, 2022 regarding including doctors in the Small Projects Initiative (5%)
The Central Bank of Egypt has recently approved a plan to offer loans for medical professionals, such as physicians, dentists and nurses at an interest rate of 5%. This initiative stems from the importance of the healthcare sector in supporting the country's goals in Egypt, where job opportunities are limited. The approval includes permitting health practitioners to join labor unions with small or micro enterprises (SMEs) under a program by the Central Bank launched in January 2016 that charges a 5% interest rate. The bank will use these allocations to facilitate electronic payment methods for medical professionals within this initiative aimed at digital transformation and comprehensive financial inclusion. The loan plan, which is part of a larger healthcare financing scheme, allows medical practitioners to obtain loans to open or upgrade their clinics with the necessary equipment and facilities, without any minimum loan amount or legal obligation requirements. The Central Bank's board has recently decided that this loan program will be extended indefinitely, highlighting its significance in providing financial support for healthcare professionals and contributing to Egypt's overall economic development.