Directing Egyptian banks to increase corporate financing towards rising prices globally

The Central Bank of Egypt has ordered banks operating in the Egyptian market to increase funding for the operations of companies and factories, especially small and medium-sized ones, which number more than 126,000 companies and factories, by injecting additional funds to help them cope with the increase in international prices and maintain operating and production rates.

The Central Bank stated, in a note, that this is done in light of President Abdel Fattah El-Sisi’s directives to central bank governor Tarek Amer to help solve problems in the sector, increase operating and production rates and support the economy in the face of developments in global markets.

This took place during a meeting chaired by Tariq Amer, Governor of the Central Bank, which saw the participation of the heads of the finance, risk and legal departments of the banks, in continuation of the meetings that the Central Bank has started with businesses since January 2020 to solve their financial problems.

The Governor of the Central Bank stressed the need for banks, in coordination with the Banking Supervision Sector of the Central Bank, immediately put an end to legal disputes on thousands of companies and about 29,000 loans to individuals, reviewing the rules for classifying customers in difficulties so that they are not deprived of bank financing.

During the meeting, Amer stressed that the impact of the Corona crisis is still extensive, and thus taking into account the classification of customers during the crisis in so that their financial positions are not disturbed, while reconsidering the rules of marginalization of clients to encourage banks to finance them in case of default so as not to worsen their financial conditions.

The Governor of the Central Bank renewed during the meeting with the banks his directives to work to solve the financial problems of the sector and to work to increase production rates, in light of the directives of President Abdel Fattah Al-Sisi to mitigate the external shock prices on the Egyptian market and support all economic activities.

The Governor of the Central Bank also ordered the heads of the banking sectors to exercise their powers and take decisions that take into account the general interest of the economy and not just the interest of the bank, stressing that the safety of the economy is to be the security of productive institutions.

Tariq Amer, the governor of the central bank, called for the need to work to solve the problems of the sector and cancel heavy fines from taxes, fines on gas, land and insurance, in order to help companies emerge from their financial crisis in order to to preserve employment and bring production rates back to higher rates.

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