Egypt to provide $6 bln in loan guarantees to aid business amid coronavirus

Egyptian men wearing masks wait outside a center of non-governmental organization Egyptian Food Bank to receive cartons with foodstuffs on April 05, 2020 in Cairo. (AFP)

Egypt’s central bank will provide up to 100 billion Egyptian pounds ($6.36 billion) in loan guarantees to banks to encourage lending to businesses during the coronavirus crisis, the state news agency quoted the bank’s governor as saying on Tuesday.

Central bank governor, Tarek Amer, told the agency: The decision comes during “increased business risks in the market, especially with regards to companies and finance.”

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The loans will carry an interest rate of 8 percent, well below the central bank’s key overnight lending rate of 10.25 percent.

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The coronavirus pandemic has wreaked havoc on Egypt’s economy, particularly with the virtual shutdown since March of the country’s tourism industry, which represents about 5 percent of gross domestic product, and the closure of restaurants and cafes.

Read more:

Coronavirus: Egypt tightens measures during Eid al-Fitr holidays

IMF agrees to lend Egypt $2.77 billion to help with coronavirus fallout

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Last Update: Wednesday, 20 May 2020 KSA 10:02 - GMT 07:02
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