Regulatory Alerts2017-07-13
A circular dated July 12, 2017 regarding financing small enterprises operating in the agricultural field, agricultural processing, fish, poultry and animal wealth.
In light of Egypt's economy and the government's focus on supporting its agricultural sector, the Central Bank of Egypt (CBE) has decided to reduce the minimum operating scale for small-to-medium enterprises (SMEs) in the agriculture and agro-industrial sectors, as well as in fish farming, animal husbandry, dairy production, and beekeeping (whether breeding or rearing). The board of directors of the Central Bank convened an extraordinary meeting on July 12, 2017 to reduce the minimum operating scale for these companies from millions of Egyptian pounds to 250,000 Egyptian pounds ($14,600), and in some cases up to half a million Egyptian pounds. This decision is aimed at **encouraging** the entry of more small-to-medium enterprises into these sectors, thus contributing to achieving sustainable development goals. Furthermore, in light of these efforts, the CBE has also decided to reduce the minimum capital required for SMEs operating in the agriculture and agro-industrial sectors, as well as in fish farming, animal husbandry, dairy production, and beekeeping (whether breeding or rearing) from millions of Egyptian pounds to 250,000 Egyptian pounds ($14,600), and in some cases up to half a million Egyptian pounds. This decision aims to **enable** these SMEs to borrow at low interest rates under the guidance of the CBE's Small and Medium-sized Enterprises Development Fund. To this end, on July 12, 2017, the Board of Directors of the Central Bank decided to reduce the minimum operating scale required for these companies from millions of Egyptian pounds to 250,000 Egyptian pounds ($14,600), and in some cases up to half a million Egyptian pounds. This decision aims to encourage the entry of more small-to-medium enterprises into these sectors, thus contributing to achieving sustainable development goals. Additionally, the Central Bank decided to reduce the minimum capital required for SMEs operating in the agriculture and agro-industrial sectors, as well as in fish farming, animal husbandry, dairy production, and beekeeping (whether breeding or rearing) from millions of Egyptian pounds to 250,000 Egyptian pounds ($14,600), and in some cases up to half a million Egyptian pounds. This decision aims to enable these SMEs to borrow at low interest rates under the guidance of the CBE's Small and Medium-sized Enterprises Development Fund.