Egypt’s Agricultural Bank pumps EGP800 mln into SMEs as part of CBE initiative

Egypt’s main agricultural lender, the Egyptian Agricultural Bank increased funds into SMEs as part of Central Bank of Egypt to 800 million Egyptian pounds by the end of January 2019.

A source with knowledge told Amwal Ghad that the bank has pumped 300 million Egyptian pounds in the last four months.

In 2016, the CBE announced an initiative to finance SMEs. Under the initiative, 20 per cent of bank loans should be allocated to SMEs within four years.

The banks are to offer around 200 billion  pounds to finance 350,000 companies and thus create job opportunities for more than four million people.

Interest rates will be less than the five per cent on loans given to youth initiatives. The banks participating in the four-year program will be able to deduct the loans from their required reserves at the CBE.

The SMEs portfolio in the Egyptian Agricultural Bank has captured 75 percent of the total credit portfolio.