Back to the complete issue
Monday, 24 February 2020

Egypt’s central bank studying plan to hedge against bank investments in SMEs

CBE studying plan to hedge against bank investments in SMEs: The Central Bank of Egypt (CBE) and its newly established Credit Guarantee Company are planning a program to help banks hedge against risks incurred by holding stakes in private equity companies and funds that invest in SMEs, CBE Sub Governor Nermine El Tahry said, according to Al Mal. The program comes after the CBE issued regulations last year allowing banks to fulfil their mandatory quota of loans to SMEs by purchasing stakes in SME-oriented investment funds. Banks are required under a CBE initiative first launched in 2015 to dedicate a portion of their loan portfolios to lend SMEs at a subsidized 5% interest rate.

Correction: 24/02/2020

A previous version of this article incorrectly cited the CBE’s Export Credit Guarantee Company.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2020 Enterprise Ventures LLC.