Egypt plans EGP 150 bn subsidised loan program for industry and agriculture

The Egyptian government is set to offer EGP 150 bn worth of loans at a subsidised 11% interest rate to industry and agriculture investors and manufacturers, according to a cabinet statement.

The program is set to launch next week, immediately after cabinet gives its final sign-off during its weekly meeting, Prime Minister Moustafa Madbouly was quoted as saying.

The government is setting aside 50% more for the loans than the CBE made available in its previous EGP 100 bn program. Some EGP 140 bn will go to financing companies’ working capital, with EGP 10 bn set aside for capital goods purchases.

However, the government has earlier announced its plan to slow down the implementation of public investment projects, including national projects, to reduce the financing gap. The gap is estimated at $17 billion over four years by the IMF, up from $16 billion.

Prime Minister Mostafa Madbouly issued last Monday a number of regulations for state bodies to rationalise public expenditure amid the ongoing global economic crisis. Such measures include, among other things, postponing new projects that require US dollars and that have not yet been launched.