Mostafa Madbouly

Dr Mustafa Madbouly, Prime Minister, held a meeting today; To take stock of the characteristics of the new initiative in support of the productive sectors (industry and agriculture), in the presence of Dr. Mohamed Moait, Minister of Finance, Mr. El-Koseir, Minister of Agriculture and Reclamation, Mohamed El-Swedy , President of the Federation of Egyptian Industries, Essam Omar, Deputy Governor of the Central Bank, and Tarek Tawfik , Vice President of the Federation of Industries, Ali Issa, President of the Association of Egyptian Businessmen, Alaa Al-Saqati, President of the Federation of Small and Medium Enterprise Investors, Ali Al-Sisi, Head of the General Budget Sector at the Ministry of Finance, and Dr. Mohamed Ibrahim, Deputy Minister of Finance.

The Prime Minister opened the meeting by referring to the government’s ongoing work to support and encourage productive sectors, and to enhance local production, focusing on priority sectors, especially the industrial and agricultural sectors. To achieve the developmental and economic goals of the Egyptian state and to increase our capacities to deal with the repercussions of global crises.

Dr Mostafa Madbouly said: There are many measures taken by the government to support the industrial sector, and we have met you previously and it was agreed to present a new initiative in this regard.

The Minister of Finance illustrated the characteristics of the new initiative in support of the productive sectors (industry and agriculture), pointing out in this context that a number of meetings were held on this initiative with representatives of the industrial sector in Egypt, and a new initiative was aimed at supporting this vital sector, emphasizing that this occurs in the light of the economic repercussions of the Russian-Ukrainian crisis, and the consequent negative repercussions on various aspects of life.

Dr. Mohamed Maait said: The most important features of the initiative in support of productive sectors include the reduction of interest rates on loans made to these sectors; to help him deal with those negative repercussions; So that the total value of the proposed initiative, which starts from the approval of the Council of Ministers at its next meeting over a period of five years, is around £150 billion, of which around £140 billion finance working capital operations , plus around £10 billion to finance the purchase of capital equipment.

The Finance Minister also indicated that the amount of credit available to each company will be determined in the light of the size of its business and the banking rules that regulate it, underlining that companies participating in the initiative will be disbursed loans at a rate subsidized interest rate of 11%, on condition that the State bears the difference in the interest rate.

The President of the Federation of Industries thanked the government for proposing this initiative, noting that it fits the broader segment of producers and farmers, he also thanked the government and the banking sector for the efforts currently being made in customs clearance of goods, goods and production requirements.

The prime minister certainly commented that any step in support of productive sectors, especially industry and agriculture, will be implemented immediately by the government. Madbouly said: The initiative will be implemented as soon as it is approved by the Council of Ministers at its meeting next week.