Egypt's Finance Min. reviews details of consumption guarantee, stimulus fund

CAIRO – 14 July 2020: Minister of Finance Mohamed Ma’it reviewed Monday night the most important details of launching the consumption guarantee and stimulus fund.

During his statements to Al-Arabiya channel, Ma’it said that the fund will be launched with a capital of LE 2 billion, and it will have multiple goals, including providing the necessary financing to owners of old cars who need financing with simple interest rate approaching the zero or another segment for those wishing to obtain apartments for low- income people whom social housing conditions did not meet.

Egypt's Sisi calls for new initiative to replace old cars with gas-powered vehicles

CAIRO - 12 July 2020: President Abdel-Fattah El-Sisi directed banks to provide facilities to citizens within an initiative to replace old cars with gas-powered vehicles. "The facilities must extend to include other parallel initiatives, including the provision of loans with very easy interest rate, even if it is zero percent," Sisi added Sunday during the opening of a number of national projects.

The minister said that the fund will have a role in the initiatives that the country will launch later in the framework of encouraging consumption of capital goods and so on.

Egypt's initiative to encourage buying local products expected to hit LE100B sales: Minister

CAIRO - 14 July 2020: The initiative to stimulate consumption and encourage demand for local products will lead to sales in the range of LE 100 billion, Minister of Finance Mohamed Ma'it said Monday night.

He added that the guarantee fund will be a mediator between the citizen and the bank for the citizen to obtain the necessary financing, noting that it will be a guarantee for the bank to obtain its money that it loaned to the citizen. He pointed out that the fund may participate in bearing the costs of interest rate with the citizen according to the state’s strategy.

"For example, if we talk about financing replacing cars, which have priority in the coming period, the fund will contribute to financing the scrapping of cars, and in this way we support the auto industry and move the sector in its growth rates, and at the same time we achieve an environmental goal which is scrapping an old car that has passed more than 25 percent. This reduces the pollution rates released by the car and the exhaust emissions from it, and the citizen is not able to replace it because of his financial conditions, “Finance Minister clarified.

He pointed out that this comes under a condition that the cars are manufactured or assembled inside an Egyptian factory in a way that drives the economy and leads to the revitalization of the sector and the creation of employment opportunities.

Ma؛it revealed that the fund will be a holding group that includes a number of companies or funds affiliated to it, and each of them focuses on a specific field and the goal in the end is to support and move the economy, especially as the coronavirus crisis affected the growth of the economies of the world and became negative thereafter.