{"id":585040,"date":"2023-04-10T00:00:00","date_gmt":"2023-04-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/10\/no-interest-rate-hikes-on-soft-loans-to-industry-agriculture-players\/"},"modified":"2023-04-10T00:00:00","modified_gmt":"2023-04-10T00:00:00","slug":"no-interest-rate-hikes-on-soft-loans-to-industry-agriculture-players","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/10\/no-interest-rate-hikes-on-soft-loans-to-industry-agriculture-players\/","title":{"rendered":"No interest rate hikes on soft loans to industry, agriculture players"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Interest rate hikes won\u2019t affect the subsidized loan program, gov\u2019t affirms<\/span><span style=\"font-weight:700\">:<\/span><span style=\"\"> The<\/span><span>Finance Ministry will continue to offer loans at a subsidized rate of 11% to industry and agriculture players despite the recent 2% rise in interest rates, the ministry said in <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0mX5PXiQwnoijYGZQg9G7SQjHbGqkJBZcviC2ThuLMgufHANR2ajHogaMzz6eVDdfl\" style=\"\">a statement<\/a><\/span><span>. The Central Bank of Egypt (CBE) last month delivered a jumbo <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d48e529f-df57-429c-ac77-650747100ba1\" style=\"\">200 bps rate hike<\/a><\/span><span style=\"font-weight:400;\"> in a bid to rein in soaring inflation.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">The price tag?<\/span><span style=\"font-weight:700\">The treasury will bear more than EGP 13 bn annually <\/span><span>to cover the difference <\/span><span>between market rates and the subsidized rate, the statement reads. The program, which will see FinMin extend some <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a1baa86d-c359-4cc5-bdd1-bee9b587290c\" style=\"\">EGP 150 bn<\/a><\/span><span>worth of loans, had initially been expected to cost the state purse around <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/de12600e-5c52-4b3b-9f2e-856da5919035\" style=\"\">EGP 10 bn<\/a><\/span><span style=\"font-weight:400;\">. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">It\u2019s all in the name of exports: <\/span><span>The <\/span><span>program seeks to <\/span><span>help industry and agriculture players increase exports \u2014 in <\/span><span>addition to covering domestic needs and limiting imports \u2014 by providing them with the liquidity to up production, the statement says. The government aims to <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/158188ff-65a9-4146-adc1-5f53c1a3f6e5\" style=\"\">increase exports to USD 100 bn a year<\/a><\/span><span style=\"font-weight:400;\"> by the middle of the decade.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">REFRESHER- <\/span><span>The government introduced the loan program last year, shortly after the CBE <\/span><span>announced it would <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b3fbe27d-0a52-434a-b969-b2b4e75f79e1\" style=\"\">stop handing out soft loans<\/a><\/span><span style=\"font-weight:400;\"> and transfer the responsibility for them to the state as part of the loan agreement with the IMF. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subsidized loans will stay at 11% despite the CBE\u2019s rate hike<\/p>\n","protected":false},"author":1,"featured_media":585041,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8250],"tags":[97,204,7106,72,7196],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-585040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt","tag-agriculture","tag-banking","tag-debt","tag-enterpriseam","tag-industry","wpautop","entry"],"acf":{"mongo_id":"802eb13a-b77b-4af6-ba0c-5f3f92c3e1ce","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/4\/391.jpg","photo_position":"below","homepage_title":"","full_issue_title":"No interest rate hikes on Egypt\u2019s soft loans to industry, agriculture players","related_issue":[585035],"teaser":"Subsidized loans will stay at 11% despite the CBE\u2019s rate hike","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/4\/.7bc3e523-2d32-41ed-b557-b5602e0eb429.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The program is set to launch next week, immediately\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/192.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":585656,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/27\/tourism-players-once-again-have-access-to-subsidized-loans\/","url_meta":{"origin":585040,"position":1},"title":"Tourism players once again have access to subsidized loans","author":"enterpriseam admin","date":"27 April 2023","format":false,"excerpt":"The gov\u2019t will offer EGP 10 bn worth of loans at an 11% rate to the industry","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/4\/869.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":617976,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/01\/govt-greenlights-egp-120-bn-subsidized-loan-program-to-support-industry-and-agriculture\/","url_meta":{"origin":585040,"position":2},"title":"Gov\u2019t greenlights EGP 120 bn subsidized loan program to support industry and agriculture","author":"enterpriseam admin","date":"1 April 2024","format":false,"excerpt":"The 15% interest rate charged is nearly half the central bank's post-float 28.25% lending rate","rel":"","context":"In &quot;Finance&quot;","block_context":{"text":"Finance","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/finance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/3\/2721.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":582409,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/03\/08\/cbe-unveils-terms-of-new-subsidized-lending-program\/","url_meta":{"origin":585040,"position":3},"title":"CBE unveils terms of new subsidized lending program","author":"enterpriseam admin","date":"8 March 2023","format":false,"excerpt":"The CBE has handed responsibility for subsidized loans to the FinMin under the IMF deal.","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/Manufacturing-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":577644,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/30\/the-end-of-subsidized-loans-to-industry\/","url_meta":{"origin":585040,"position":4},"title":"The end of subsidized loans to industry","author":"enterpriseam admin","date":"30 November 2022","format":false,"excerpt":"Subsidized loans to industrial, agricultural, and construction companies will be axed, Deputy Central Bank of Egypt (CBE) Governor Gamal Negm said during a cabinet meeting yesterday. Borrowers who have already taken out loans under the program will continue to benefit from the subsidized 8% interest rate. However, industry players who\u2026","rel":"","context":"In &quot;Debt&quot;","block_context":{"text":"Debt","link":"https:\/\/enterpriseam.com\/egypt\/category\/business\/debt\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/499.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":673658,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/10\/16\/govt-extends-subsidized-loan-program-to-support-industry-agriculture-renewables\/","url_meta":{"origin":585040,"position":5},"title":"Gov\u2019t extends subsidized loan program to support industry, agriculture, renewables","author":"enterpriseam admin","date":"16 October 2025","format":false,"excerpt":"Loans offered under the program will come at a 15% interest rate","rel":"","context":"In &quot;Finance&quot;","block_context":{"text":"Finance","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/finance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/12\/695.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/585040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=585040"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/585040\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/585035"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/585041"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=585040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=585040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=585040"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=585040"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=585040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}