Regulatory Alerts2023-03-07
Added · Updated
Circular dated March 7, 2023 regarding the Council of Ministers’ approval to issue an initiative to finance industrial and agricultural private sector companies at a decreasing rate of return of 11%
The Council of Ministers approved an initiative with a total local currency value of 150 billion EGP to finance working capital and equipment for private sector companies in industrial, agricultural, and renewable energy activities at a decreasing interest rate of 11%. The initiative caps individual financing at 75 million EGP (112.5 million EGP for related parties), limits participation to two banks per client, and prohibits using funds to settle other banking debts. The Ministry of Finance covers the difference between the central bank discount rate plus 1% and the 11% rate, with quarterly compensation payments to participating banks.
Topics
monetary
credit
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