What:
Prime Minister Moustafa Madbouly has green-lit an EGP 120 billion loan program. Its focus is on companies in free zones, agriculture, and renewable energy sectors. The aim is to boost domestic production and sharpen the competitive edge of Egyptian exports.
Big Picture:
A whopping EGP 105 billion is dedicated to juicing up working capital, with the remaining EGP 15 billion slated for capital expenditures in production lines and facilities.
Interest Insight:
At a 15% interest rate, this round’s loans are pricier than January 2023’s 11% offer. Still, they sit comfortably below the Central Bank of Egypt’s (CBE) 28.25% lending rate. For those who previously bagged loans at the gentler 11% rate under the old program, the government isn’t turning off the subsidy tap according to Finance Minister Mohamed Maait.
Bigger Bucks:
Individual companies can now borrow up to EGP 100 million, up from the previous EGP 75 million cap. Associated companies, on the other hand, get a new cap of EGP 130 million, a jump from EGP 112.5 million previously.
