Egypt announces LE 120B soft financing for agricultural, industrial production

Minister of Finance, Mohamed Maait, announced Egypt's provision of LE 120 billion in soft financing for agricultural and industrial production activities, during a meeting with representatives from the manufacturing, investment, and export sectors.

 

The interest rate for this financing will not exceed 15 percent. The allocated funds will be divided into two categories: LE 105 billion for working capital and LE 15 billion for the acquisition of machinery, equipment, or production lines.

 

Minister Maait highlighted Egypt's endeavors to reduce production costs, promote exports, and sustain economic growth. To support this initiative, the state's public treasury annually covers an interest rate difference of approximately LE 8 billion for the beneficiaries.

 

Furthermore, the Minister clarified that the interest rate of 11 percent will remain unaltered for both current financing and balances used for working capital purposes.

 

 Moreover, the maximum financing limit for a single company will be raised from LE 75 million to LE 100 million, while multilateral entities' financing limit will increase from LE 112.5 million to LE 130 million.

 

It is important to note that this initiative specifically targets new and renewable energy ventures, free zone factories, and agricultural cooperative societies. It is strictly prohibited to employ these credit facilities to settle any outstanding debts owed to the banking sector.