Egypt’s central bank obliges banks to increase financing directed to SMEs to 25%

SourceEgypt Today
SectorFinancial Services

CAIRO - 23 February 2021: The Board of Directors of the Central Bank of Egypt (CBE) decided to compel banks to increase financing directed to companies and micro, small and medium enterprises (SMEs) from 20 percent to 25 percent of the bank's credit facilities portfolio, which leads to an additional LE 117 billion injection into this vital sector by the end of December 2022.   CBE stated in a statement, Monday, that it had been decided to provide funding to more than 120,000 companies and establishments, which would create and maintain job opportunities of about one million jobs, assuming the minimum number of workers according to the size of the companies.   It indicated that banks were asked to develop plans to achieve the prescribed percentage, including governorates and targeted economic sectors, so that implementation would be followed up on a quarterly basis.   The Central Bank said that the decision comes in light of the President's directives to encourage financing of companies and micro, small and medium enterprises, given their strategic importance in achieving economic growth.   CBE noted the issuance of a package of measures and facilities to ensure that financing reaches the markets, create millions more...