The Central Bank of Egypt (CBE) affirmed that the banks operating in the Egyptian market are committed to its instructions for financing small and very small projects.
Some media reports claimed that some people in business had received the funds allocated to the small projects according to the CBE’s initiative launched in January, the CBE mentioned in a statement released on Wednesday.
The statement added that such news only leads to confusing public opinion without actual evidence of the claim, aiming to undermine the positive goal of the initiative. It warned against the effects of circulating such news.
Gamal Negm, deputy governor of the bank, met with the small and medium-sized enterprises (SME) committee of parliament on 16 May. He assured them that the banks are committed to the CBE’s instructions. Subsidised financing will be allocated for the target projects in accordance with the initiative’s standards and the definition of small projects adopted in December 2015.
The CBE asserted that it controls and supervises all the banks in the Egyptian market, so as to verify the proper application of the initiative and impose penalties on banks which violate instructions.
The CBE added that the customer will bear the difference between the rate of their subsidised loan and the actual yield rate valid at the time of obtaining the loan, in case of violations—which has not happened as of now.
