The Central Bank of Egypt (CBE) notified banks operating in the local market to stop granting short-term credit facilities to finance the working capital of medium-sized enterprises operating in several fields as part of the initiative launched by the CBE for this purpose, with an interest rate of 12%.
On 27 February 2017, the CBE announced allocated EGP 10bn for banks with an interest of 12% to be used in funding the working capital of medium companies that operate in the industrial field, agricultural processing, and new and renewable energy only, stressing that banks should give priority to companies operating in the fields of exports or imports substitution.
According to CBE Deputy Governor Gamal Negm, the initiative has succeeded in achieving the desired objectives, and the amount allocated by the CBE in this initiative has been exhausted.
Negm directed banks to stop granting new credit facilities to these companies as part of the initiative starting from 25 March 2018, as per a letter sent out to all banks.
