Central bank of Egypt- File photo
CAIRO - 23 May 2017: The Central Bank of Egypt (CBE) launched, Tuesday, a microfinance initiative to enlarge banking funding to micro projects, Governor Tarek Amer said in a press conference.
Amer said that the initiative came after coordination with 750 institutions and civil society organizations, targeting the expansion of the banking sector’s client base.
Micro-financing of individuals and companies will comprise 20 percent of the credit portfolio of banks under the initiative, Amer explained.
“The initiative targets embracing the biggest amount of small enterprises under the official financial sector, and activating the electronic payment systems via mobile phones to pay loans and installments,” Amer said.
The statements came during a press briefing on the financial inclusion week at the CBE premises on Tuesday, attended by Minister of Social Solidarity Ghada Wali and representatives from the banking sector.
The microfinance initiative was announced during the 9th annual conference of the Egyptian Banking Institute (EBI) on May 8. Local banks have financed 37,000 small and medium enterprises (SMEs), with a total worth of L.E. 101 billion, Deputy Governor of the CBE Gamal Negm said during the conference.
Talking about the impact of the campaign, Amer said that around 81,000 bank accounts have been opened during the financial inclusion week at 36 banks.
Amer added that the deposits volume amounted to L.E. 290 million during that week.
The Arab Week for Financial Inclusion was launched by the CBE from April 27-4 May, aiming to encompass a larger number of individuals in the banking sector.