Regulatory Alerts2021-01-03
Added · Updated
Circular dated January 3, 2021 regarding the initiative to replace vehicles with dual fuel
The Central Bank of Egypt authorizes banks to provide 15 billion EGP in loans at a fixed interest rate of 3% for individuals replacing vehicles with dual-fuel alternatives. The initiative covers cars, taxis, and minibuses with loan terms of 7 to 10 years, with the central bank compensating banks for the interest rate spread and waiving early repayment fees. Beneficiaries are exempt from the consumer loan-to-income ratio, and the Credit Risk Guarantee Company covers 80% of the associated risks under a 15 billion EGP guarantee commitment.