Directing Egyptian banks to increase corporate financing towards rising prices globally

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وجه Egyptian Central BankBanks operating in the Egyptian market need to increase financing for the operations of companies and factories, especially small and medium ones, whose number exceeds 126 thousand companies and factories, by pumping additional funds in order to help them face the increase in international prices and maintain operating and production rates.

The Central Bank stated, in a statement, that this comes in light of President Abdel Fattah El-Sisi’s directives to Central Bank Governor Tarek Amer to contribute to solving industry problems, increasing employment and production rates, and supporting the economy in the face of developments in global markets.

This came during a meeting chaired by Tariq Amer, Governor of the Central Bank, and included the leaders of finance, risks and legal departments in banks, in continuation of the meetings that the Central Bank has started with companies 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, to immediately end judicial disputes about thousands of companies and about 29,000 loans to individuals, while reviewing the rules for classifying troubled customers so that they are not deprived of bank financing.

During the meeting, Amer stressed that the impact of the Corona crisis is still extended, and therefore taking into account the classification of customers during the crisis so that their financial positions are not disturbed, while reconsidering the rules of marginalizing customers 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 his directives during the meeting to the banks to work on solving the financial problems of the industry and work to increase production rates, in light of President Abdel Fattah Al-Sisi’s directives to mitigate the external price shock on the Egyptian market, and support all economic activities.

The Governor of the Central Bank also directed the heads of sectors in the banks to use their powers and take decisions that take into account the general interest of the economy and not only the interest of the bank, stressing that the safety of the economy is from the safety of productive institutions.

Tariq Amer, the governor of the Central Bank, called for the need to work on solving the problems of the industry and to write off heavy fines from taxes, gas fines, land and insurances, in order to help companies get out of their financial stumbling in order to preserve employment and return production rates to higher rates.





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