Egypt’s CBE explains its decision to terminate low-interest initiatives for private sector
The Central Bank of Egypt (CBE) has published a circular to explain inquiries about discontinuing the private sector industrial, agricultural and construction sectors initiative.
The CBE has called off its low-interest initiatives for the private sector in the industry, agriculture, and construction fields. The initiatives had allowed the private sector to acquire loans with a decreasing eight percent interest rate.
The CBE sent a circular to banks operating in the Egyptian market announcing they will no longer manage the 8% low-interest rate initiatives, handing off the responsibility to the Ministry of Finance.
The beneficiaries will repay their dues for the short-term facilities they had secured over one year.
Regarding the medium- and short-term credit facilities offered to the beneficiaries under these initiatives; the balances will continue to be disbursed within the approved maturities.
In the event that the customer wishes to renew or increase any credit facilities granted within low-interest rate initiatives, this shall be done according to the prevailing interest rates