Regulatory Alerts2024-04-07
A circular dated April 7, 2024 regarding amendments to the initiative to finance industrial and agricultural private sector companies in accordance with the approval of the Council of Ministers.
The Central Bank of Egypt's Board of Directors has approved a loan program for small and medium-sized private manufacturing and agricultural companies with a net return rate of 11%. This approval was made in cabinet session number 284, set to be implemented from April 3rd, 2024. The program will now have a borrower's maximum limit raised to 100 million Egyptian pounds, up from the previous 75 million. Additionally, the loan repayment terms have been adjusted, increasing the borrowing capacity of one individual and their affiliated entities to 150 million Egyptian pounds. The new terms will apply to all new loans and some existing ones. Existing interest rates of 11% net return will remain in effect until April 3rd, at which point they will be revised based on loan agreement contracts in place.