Africa Financial Sector Responses to COVID-19 - Egypt

Jul 28, 2020

This page presents measures and initiatives by the Egyptian government, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.

Disclaimer: This page contains information and links from third parties. These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by MFW4A.

Instrument

Institution

Financing volume

Description 

Regulatory measures

Government

N/A

(June 29, 2020) The government is establishing financial rules to deal with the impact of COVID-19 through a Law No. 24 of 2020.

Multilateral line of credit

The European Bank for Reconstruction and Development (EBRD)

USD 300 million

(June 23, 2020) The EBRD provided loans to the Commercial International Bank and the National Bank of Egypt of USD 100 million and USD 200 million respectively. These financings are intended to support companies that are experiencing declining revenues and cash flow difficulties.

Multilateral line of credit

The European Bank for Reconstruction and Development (EBRD)

USD 100 million

(June 02, 2020) QNB Alahli received a loan from the EBRD worth USD 100 million. This financing will be on-lent in the form of credits and will support SMEs that are experiencing a decline in profitability.

Multilateral line of credit

European Investment Bank (EIB)

USD 100 million

(May 14, 2020) The EIB and Cairo Bank have signed a USD 100 million financing agreement aimed at maintaining jobs and boosting the competitiveness of small and medium-sized enterprises (SMEs) in various segments of manufacturing and services.

Multilateral line of credit

The European Bank for Reconstruction and Development (EBRD)

USD 100 million

(May 12, 2020) The EBRD is providing this financing of USD 100 million and could supplement this amount to USD 250 million to finance companies engaged in import-export operations and help absorb the increased demand for transactions.

Financial support measures for the private sector

Government

USD 190 million

(May 12, 2020) A guarantee fund with the CBE worth 3 billion Egyptian pounds (190 million USD) will be issued by the government, the objective is to facilitate loans to Egyptian tourist and hotel establishments by local banks.

Regulatory measures

Government

N/A

(May 11, 2020) The head of the Egyptian Tax Authority (ETA) recommends to the taxpayer the payment of their contribution taxes by electronic means. 

Financial support measures for the private sector

Central bank of Egypt

USD 6.3 billion

(April 07, 2020) The central bank provided a loan to the government worth 100 billion Egyptian pounds (USD 6.3 billion), which will help finance the manufacturing sector.

Monetary Policy

Central bank of Egypt

USD 1.3 billion

(March 27, 2020) Cut the CBE's key rate by 50 basis points and injected 15 billion Egyptian pounds (USD 1.3 billion) of liquidity into the economy.

Regulatory measures

Central bank of Egypt

N/A

(March 25, 2020)  In order to accelerate digital payments in response to the impact of COVID-19, the CBE increased the daily and monthly limits for transactions by mobile phone and remote means of payment.

Regulatory measures

Central bank of Egypt

N/A

(March 16, 2020) Measures of the Central Bank of Egypt (CBE), including:
* Cancellation of fees and commissions applied to ATMs/cash dispensers, electronic transactions and loan repayments deferral  for Small and medium-sized companies (SMEs) for 6 months ;
* The cancellation of penalties applied on overdue receivables.

 


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