Sisi directs CBE to support local market, SMEs to alleviate COVID-19 repercussions

CAIRO – 19 August 2020: President Abdel Fatah al-Sisi directed the banking system to continue in its efforts in support of the local market and financing the development process to achieve the desired goals, as well as supporting initiatives of medium, small and micro enterprises and those that deal with the dimension of social protection, which would reduce the repercussions of the coronavirus crisis on all categories of citizens.

This came during Sisi’s meeting with Central Bank Governor Tarek Amer, in the presence of deputy governors of the bank, Gamal Nagm and Ramy Abul-Naga.

The Spokesperson for the Presidency Bassem Rady, said in a statement, Tuesday, that the meeting dealt with a review of financial and monetary developments in light of the repercussions of the coronavirus pandemic, and the Central Bank's dealings in this context.

The Central Bank Governor stated that all indicators reflected the ability of the Egyptian state to cross the repercussions of the coronavirus in order to maintain the stability of its financial and monetary indicators according to the figures and data of the balance of payments for 2019/2020, which witnessed stable exchange rates and inflation rates, compared to emerging countries.

Amer also reviewed what the banking system, represented in the banking sector, had done during the past period in light of the spread of the coronavirus pandemic, which succeeded in pumping a huge volume of liquidity into the local market to provide foreign and domestic cash, in addition to providing all the needs of the government sector to finance the development process.

 Amer pointed to doubling the volume of domestic loans during 2019/2020, compared to previous rates, as well as strengthening the role of the banking system in financing presidential initiatives.

The governor of the Central Bank confirmed that these results were achieved due to the strength of the Egyptian banking system and its enjoyment of high financial safety indicators that exceed the rates required for the counterpart countries at the global level, whether in terms of capital strength, liquidity and profitability, which was reflected in Egypt's recent success in the speed of concluding two financing packages with the International Monetary Fund without any requirements to fill any future financing gaps, Rady stated.

Funding for SMEs support initiative amounts to about LE180B: CBE governor

All indicators reflected the ability of the Egyptian state to cross the repercussions of the coronavirus in order to maintain the stability of its financial and monetary indicators according to the figures and data of the balance of payments for 2019/2020.