Egypt sets aside 120 billion pounds for agriculture and industry in soft financing

Egypt sets aside 120 billion pounds for agriculture and industry in soft financing

The Minister of Finance, Dr. Mohamed Maait, announced that the Council of Ministers has approved the continuation of the initiative to support financing facilities for productive sectors in the Egyptian economy. During a meeting with industrialists, investors, and exporters, the minister revealed that 120 billion pounds will be made available in soft financing for agricultural and industrial production activities, with an interest rate capped at 15%. This initiative aims to boost the economy by supporting productive sectors while considering the rise in interest rates.

Out of the total funding, 105 billion pounds will be allocated for financing working capital, while 15 billion pounds will be dedicated to purchasing machinery, equipment, or production lines. Dr. Maait emphasized that the Ministry of Finance will share financing burdens with investors to reduce production costs, stimulate exports, and sustain economic growth. The state’s public treasury is expected to bear around 8 billion pounds in interest rate differences annually for the beneficiaries of this initiative.

The Minister highlighted that the interest rate for current financing and working capital balances will be maintained at 11%, in line with actual medium-term financing contracts and credit facilities. Additionally, the maximum financing for a single company has been increased, providing more support to businesses in various sectors, including new and renewable energy activities, free zone factories, and agricultural cooperative societies. The government aims to boost local production, maximize exports, and enhance the competitiveness of Egyptian products in global markets.

Furthermore, the initiative aligns with government policies to empower the private sector and increase its contribution to economic development. Dr. Maait emphasized the importance of leveraging the state’s resources, strategic geographical location, advanced infrastructure, and investment incentives to drive economic growth. The meeting was attended by key industry stakeholders, including the Minister of Trade and Industry, representatives from the Federation of Industries, and other business associations and industry leaders.

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