Egypt’s Prime Minister, Mostafa Madbouly, announced several government initiatives in cooperation with the Central Bank of Egypt (CBE) to support the industrial sector, housing, and boost investment, the cabinet announced on Wednesday.
Madbouly revealed a new initiative to finance industrial activities by EGP 100bn, with a decreasing interest rate of 10%. Under the initiative, industries of goods that Egypt usually imports will be prioritised in order to ease import pressures and encourage exports.
He pointed out that the second initiative to finance closed factories to re-operate, and it will benefit 5,184 factories, with an interest relief of EGP 31bn.
These factories have been reviewed by the CBE, according to CBE Governor, Tarek Amer, adding that these troubled companies will also be removed from the CBE blacklists, allowing them to return to the negotiation table with the baking system in order to repay 50% of their loan principal.
The central bank governor pointed out that the total size of the principal debt of these troubled factories is EGP 6bn.
Amer said EGP 100bn financing will be provided for small and medium enterprises, at a 10% interest rate.
Accordingly, the prime minister explained that there are about 4,500 small and medium factories that are being implemented by the state in coordination with the CBE. “This aims to boost Egypt’s industrial sector,” he explained.
Furthermore, Madbouly added that 96,000 industrial facilities will enjoy long or medium-term loans, as needed, according to this initiative.
He pointed out that the volume of loans extended to 182,000 industrial establishments amounting to EGP 432bn.
In regards to housing, Madbouly also announced an EGP 50bn programme to finance housing units for middle-income families, as part of the initiative launched by the CBE to help real estate developers.