Dr. Mohamed Maait, Minister of Finance, confirmed that the Council of Ministers approved the continuation of the initiative to support the interest of stimulating financing facilities for productive sectors, with the aim of advancing the Egyptian economy.
The minister added, in a meeting with a number of industrialists, investors and exporters, that the ministry will make 120 billion pounds available in soft financing for agricultural and industrial production activities, with an interest rate not exceeding 15%, in an initiative to support productive sectors, taking into account the rise in interest rates.
He said: 105 billion pounds will be allocated to finance working capital, and 15 billion pounds will be allocated to purchase machinery, equipment or production lines.
The Minister of Finance pointed out that the Ministry shares financing burdens with investors to reduce production costs, stimulate exports, and sustain economic growth.
He explained that the state’s public treasury bears about 8 billion pounds of interest rate difference annually for the beneficiaries of this initiative.
The Minister indicated that the interest rate will be maintained at 11% for current financing and balances used in working capital, in order to take into account the actual contracts on medium-term financing, as well as the amounts used under the credit facilities to finance working capital.
- Maximum company financing
The Minister of Finance pointed out that the maximum financing for a single company has been increased from 75 million pounds to 100 million pounds, and for multilateral entities from 112.5 million pounds to 130 million pounds.
Dr. Muhammad Maait explained that this initiative applies to new and renewable energy activities, free zone factories, and agricultural cooperative societies, and it is prohibited to use these credit facilities granted to pay any debts owed to the banking sector, in a way that ensures achieving the desired goals, so that this initiative contributes effectively to paying… The acceleration of agricultural and industrial production, in a way that is reflected in the state being more empowered to cover our needs with local production and export surpluses abroad.
He said: “This initiative is consistent with the policies, measures and procedures taken by the government to empower the private sector and increase its contribution to economic and development activity and domestic output, as it is the engine of stability, recovery and sustainable economic growth, rich in productive job opportunities.”
He pointed out that the state aims to localize local production, maximize exports, and enhance the competitiveness of Egyptian products in global markets, which reflects the optimal exploitation of the state’s resources, both in terms of the preferential advantages of the strategic geographical location as a regional and global center for production and export, based on an advanced infrastructure capable of accommodating Investment expansions, as well as steps to simplify procedures, leading to the “golden licence”, and investment, tax and customs incentives for some sectors of national priority.
Participated in the meeting were Eng. Ahmed Samir, Minister of Trade and Industry, Mohamed Al-Sallab, Chairman of the Industry Committee in the House of Representatives, member of the Board of Directors of the Federation of Industries, Mahmoud Sarg, member of the Board of Directors of the Federation of Industries, Ali Issa, President of the Egyptian Businessmen Association, and Majd Al-Manzalawi, Secretary-General of the Egyptian Businessmen Association, President. The Executive Board of Trustees of the Egyptian-Chinese Businessmen Association, Dr. Samir Arif, Chairman of the Board of Directors of the 10th of Ramadan Investors Association, and Khaled Abu Al-Makarem, Chairman of the Export Council for Chemical Industries and Fertilizers.