Regulatory Alerts2020-03-26
Added · Updated
Circular dated March 25, 2020 regarding adding companies operating in the agricultural field to benefit from the private industrial sector initiative
The Central Bank of Egypt adds agricultural companies, including those in production, processing, export stations, cold storage, and livestock, with annual turnover between 50 million and 1 billion Egyptian pounds to the private industrial sector initiative, granting them access to financing at an 8% annual interest rate. The circular also confirms the continued validity of the July 12, 2017 initiative for small agricultural enterprises with annual turnover between 250,000 and under 50 million Egyptian pounds, which receive financing at a 5% annual interest rate. These measures are effective as of the date of the circular.
Cairo on: March 25, 2020 To: Chairman of the Board of Directors Bank
Greetings,
With reference to the Central Bank of Egypt's initiative dated December 12, 2019, and its subsequent circulars regarding the availability of financing for companies operating in the private industrial sector in the amount of 100 billion Egyptian pounds at an annual interest rate of 8% (declining simple interest) through banks to be used in granting credit facilities to companies whose annual turnover or revenues range from 50 million Egyptian pounds to 1 billion Egyptian pounds,
And in light of the Central Bank of Egypt's keenness to support and assist the agricultural sector, the following has been decided:
Adding companies operating in the agricultural field and agricultural production and processing, including export and packing stations for agricultural goods, cold storage, and others, as well as fish, poultry, and animal wealth, whose annual turnover or revenues range from 50 million Egyptian pounds to 1 billion Egyptian pounds, to benefit from the private industrial sector initiative mentioned above, in accordance with the conditions mentioned in the initiative.
This, while emphasizing the continued validity of the initiative issued on July 12, 2017, under which credit facilities are granted at a low interest rate of 5% (declining simple interest) to small companies and establishments operating in the agricultural field and agricultural processing, and others, whose annual turnover or revenues range from 250,000 Egyptian pounds to less than 50 million Egyptian pounds.
Please be so kind as to alert regarding taking the necessary action in this regard as of its date.