Work will continue on the initiative to support industrial and agricultural projects from the new budget, a government minister announced on Sunday.
Minister of Finance Mohamed Maeet added that LE150 billion will be allocated to the five-year initiative, of which LE140 billion will be capital and LE10 billion to purchase capital goods.
This comes in accordance with directives from the political leadership, the minister said.
The amount of credit available to each company will be determined by the volume of its business and banking regulations but not exceed LE75 million, the minister added, pointing out that each company conducts transactions with no more than two banks involved in the initiative which offer reduced interest rate at 11 per cent, while the ministry bears the difference in interest.
The goals of the initiative are to enhance local production and render the economy able to withstand global crises, Maeet said.
Thanks to the initiative, industry will grow now that interest rate on deposit certificates has been raised banks, the minister said.
The government is keen to increase the number of beneficiaries of the initiative by setting a maximum LE75 million to finance one company and LE112.5 million for multilateral entities, Maeet added.
This initiative applies to projects in new and renewable energy, free zone factories, and agricultural co-operatives, he said.
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