Central Bank of Egypt braces for multi-billion-pound microfinance initiative

Egypt’s central bank is preparing the ground to launch a new initiative dedicated for the microfinance sector before the end of this financial year, banking sources with knowledge told Amwal Al Ghad on Wednesday.

The Central Bank of Egypt (CBE) plans to allocate 20 billion Egyptian pounds ($1.2 billion) for the microfinancing activities in the country, the sources added.

According to the new initiative, the banks will not be obliged to establish a special unit for microfinancing; as they can provide both direct and indirect lending to clients, the sources said.