Circular dated March 14, 2019 regarding financing agricultural cooperative societies within the Central Bank’s initiative for small companies and enterprises

Cairo on: 14 March 2019

Dear Sir / Chairman of the Board,

Greetings,

In the framework of the Central Bank of Egypt's initiative to finance small companies and enterprises at a low interest rate of 5%, issued on January 11, 2016, and in an effort to provide further support to the agricultural sector, including providing financing to farmers to update irrigation means and extend water lines, the Central Bank deemed it important to expand the circle of beneficiaries of the aforementioned initiative to include this important sector due to its positive effects on raising growth and development rates and improving the performance of the national economy. Therefore, the Board of Directors of the Central Bank of Egypt, in its session held on March 13, 2019, decided the following:

"Allowing banks to finance cooperative societies - whether those belonging to farmers or societies established for the purpose of transitioning to modern irrigation methods - under the Central Bank's initiative for small companies and enterprises at an interest rate of 5% (reducing balance interest rate)"

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Please be so kind as to alert relevant parties to take the necessary action to implement the aforementioned decision.

Yours faithfully,
Gamal Naguib