Egypt's central bank extends deadline for upping banks' credit facilities portfolio to 25% for a year

The Central Bank of Egypt (CBE) extended on Thursday for one year - from 31 December 2022 to the end of December 2023 - the deadline for banks that have not yet increased their credit facilities portfolio to companies and micro, small and medium-sized enterprises (SMEs) to 25 percent.

The measure is meant to encourage banks to continue financing these projects which are vital for economic growth.

In February 2021, the CBE instructed the banking sector to increase allocations for micro, small and medium-sized enterprises (MSMEs) from 20 to 25 percent of their credit facilitations.

The decision resulted in pumping EGP 117 billion to the MSMEs sector by the end of 2022.

The allocations will benefit more than 120 MSMEs that provide about a million job opportunities, said the CBE.

The central bank added the move is based on President Abdel-Fattah El-Sisi's directives to support the MSMEs sector due to its strategic importance in achieving Egypt’s economic growth.