Egypt Central Bank Takes Initiatives to Salvage Troubled Entities

Egypt Central Bank Takes Initiatives to Salvage Troubled Entities

Thursday, 17 May, 2018 - 11:15
Central Bank of Egypt's headquarters is seen in downtown Cairo, Egypt March 8, 2016. REUTERS/Mohamed Abd El Ghany
Cairo - Asharq Al-Awsat
The Central Bank of Egypt (CBE) has announced a series of initiatives to exempt tens of thousands of entities from debt interests and to double funding for small and medium enterprises (SMEs).

The CBE aims to launch an initiative to exempt around 107,000 clients from debt interests, and delay the deadline for the payment of penalties and for judicial action.

The initiative, which was set to be announced in the course of this week, targets around 5,000 factories and 27,000 clients at the Agricultural Bank of Egypt in addition to around 75,000 retail banking clients.

But its announcement was postponed to next week after a number of banks expressed willingness to take part in the initiative.

Central Bank Governor Tarek Amer announced last week that Egyptian President Abdel Fattah Al-Sisi approved the launching of the initiative.

Amer added that since the launch of the SMEs initiative, funding has reached around EGP100 billion. The CBE aims to double the amount within four years.

There have been other initiatives to support real-estate funding and the revival of the tourism sector.

In a related context, Egypt's Minister of Finance Amr Al-Garhi approved decisions taken by the high committee for eliminating taxes to facilitate the activity of financiers and build bridges of trust between the department of taxation and taxpayers.

Garhi issued instructions to the department to focus on the humanitarian aspect of tax-paying, noting that raising awareness is a significant part of the department’s community-based role.

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