{"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":582409,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/03\/08\/cbe-unveils-terms-of-new-subsidized-lending-program\/","url_meta":{"origin":585040,"position":2},"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":3},"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":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":4},"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":571401,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/11\/cbe-may-extend-subsidized-loan-program-to-contractors\/","url_meta":{"origin":585040,"position":5},"title":"CBE may extend subsidized loan program to contractors","author":"enterpriseam admin","date":"11 May 2020","format":false,"excerpt":"CBE may extend subsidized loan program to contractors: CBE Governor Tarek Amer will propose allowing contractors to access subsidized loans under the bank\u2019s EGP 100 bn industry stimulus initiative at the next board meeting, he said in an interview with MENA picked up by the local press. Amer stressed the\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","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}]}}