Cairo - Mubasher: The Central Bank of Egypt (CBE) launched a program to enhance the finance of small- and medium-sized enterprises (SME).
The move aims to increase the Growth Domestic Product (GDP) as well as create job opportunities and cut the unemployment rate, according to a press statement.
Through this initiative, Egypt's banks are expected to inject nearly EGP 200 billion into supporting SMEs over the next four years.
The loans to be awarded for financing SMEs are expected to account for around 20% of Egypt's banks total loans portfolios through the next four years.
The program guidelines also stated that the interest rates on loans offered to SMEs would not exceed 5%.
Meanwhile, in return for issuing the loans, participating banks will be allowed to cut their level of required reserves held at CBE by an amount equivalent to what they lend.
