Regulatory Alerts2020-01-12
Added · Updated
Circular dated January 12, 2020 regarding the exhaustion of the amount available for the medium-sized companies initiative at a return rate of 7%
The Central Bank of Egypt instructs banks to cease granting new financing under the medium-sized companies initiative effective December 12, 2019, as the allocated EGP 5 billion has been fully exhausted. This directive applies to all commercial banks participating in the program which previously offered loans at a 7% interest rate for industrial, agricultural, and renewable energy sectors.
Cairo on: 12 January 2020
To the Chairman of the Board of Directors,
Dear Sir,
With reference to the circular letter issued on February 22, 2016, and its amendment dated March 5, 2017, concerning the allocation by the Central Bank of Egypt of an amount of EGP 5 billion across tranches, which banks are to re-lend to regular medium-sized companies operating or newly established in the fields of industry, agriculture, and new and renewable energy at a return rate of 7%, with the aim of financing new machinery, equipment, or production lines.
I wish to inform you that, given the success of the aforementioned initiative and the exhaustion of the available amount, please take the necessary steps to notify the cessation of granting new financing under this initiative, taking into consideration the possibility for the private industrial sector to benefit from the initiative issued on December 12, 2019.
Please accept my highest regards.
Tarek Amer