Egypt’s Public Bank for Development and Agricultural Credit (PBDAC) is negotiating with the Saudi Fund for Development (SFD) to obtain a EGP 100m loan at a low interest rate. The loan will finance agricultural industrialisation projects and greenhouses, according to PBDAC chairperson Elsayed Elkosayer.
Elkosayer told Daily News Egypt that the bank’s negotiations with SFD are conducted under the supervision of the Ministry of International Cooperation and Planning.
This loan will be the first instalment, and it can be increased in accordance with the bank’s requirements of liquidity and the agreement with SFD, according to Elkosayer.
Meanwhile, the Central Bank of Egypt (CBE) has agreed to exempt PBDAC from the reserve requirements on deposits of up to 10%.
According to Elkosayer, this step will provide up to EGP 360m in liquidity annually. This sum will be directed towards restructuring the bank and various investments.
He added that the bank is still awaiting parliament’s approval to confirm the bank’s affiliation with the CBE, which will contribute to activating its role.
Elkosayer said that affiliation with the CBE will give the bank a greater opportunity to negotiate with local and international financial institutions to get loans at special interest rates. PBDAC will redirect these loans to farmers at low interest rates. The CBE may also offer a support loan to the bank to support its capital base or restructuring such as that of other banks that received similar loans.
He pointed out that the launch of the “farmer smart card” in cooperation with the ministries of agriculture and military production will serve about 7 million farmers and rural inhabitants. This system will also allow PBDAC to provide many banking services to them.
The smart card will help conduct inventory of planted spaces and crops, as well as control and supervise financial support provided to farmers. In addition, it will ensure that farmers receive their agriculture requirements.