Banks raise their loans to the industrial sector by EGP 290.3 bn in 5 months

The latest statistical bulletin of the Central Bank of Egypt showed that the amount of loans provided by banks to the industry sector during the first 5 months of 2024 increased by 34.15%, with an increase of EGP 290.3 bn.

According to newly released data, banks' loans for the industrial sector rose to EGP 1.14 tn by the end of May 2024, compared to EGP 850.1 bn by the end of 2023.

This comes in the light of the increasing attention paid by Egypt to the industrial sector, as one of the fundamental pillars for achieving the objectives of Egypt's Vision 2030, by becoming one of the world's 30 largest economies by 2030, by laying the foundations for sustainable development to create a knowledge-based and competitive economy.

Banks' loan balances to the industrial sector in local currency rose by 23.85% during the first 5 months of this year, reaching EGP 729.2 bn by the end of May 2024, compared to EGP 588.8 bn by the end of December 2023, representing an increase of EGP 140.4 bn.

This significant surge in financing for the industrial sector in local currency resulted from an increase in banks' loans to the private industrial sector in local currency to 649.2 billion pounds by the end of May 2024, compared to EGP 550.7 bn by the end of 2023, with a growth of 17.89% and an increase of EGP 98.5 bn.

Banks' loan balances to the industry in foreign currencies rose by 57.35% during the first 5 months of this year, reaching the equivalent of EGP 411.2 bn by the end of May 2024, compared to EGP 261.3 bn by the end of 2023

The large leap achieved by the industrial sector in foreign currencies, as a result of the increase in banks' loans to the private industrial sector in foreign currencies, was equal to EGP 309.03 bn by the end of May 2024, compared to EGP 217.7 bn by the end of 2023, with a growth of 41.96% and an increase of EGP 91.3 bn.

It should be noted that the significant increases in banks' loans for the industrial sector in foreign currencies are mainly due to changes in the exchange rate, as these changes have increased the cost of loans in foreign currencies, thereby contributing to these significant leaps in the value of loans provided to the sector