Two-year installment plans, online access in gov’t consumer spending initiative
Two-year installment plans, e-commerce are part of gov’t consumer-spending initiative: Citizens will be offered two-year, low-interest installment plans to pay for consumer goods as part of new measures to encourage spending announced earlier this week, cabinet said in a statement yesterday. The government will create a dedicated online store that people can use to purchase products under the installment plans. The three-month program, which also includes discounts on selected consumer goods, will start from the end of July and aims to stimulate EGP 100 bn worth of consumer spending, the statement says.
Background: The government announced earlier this week a package of measures designed to support consumer spending and end the demand slump caused by the covid-19 pandemic. The government has made agreements with manufacturers and merchants to offer 15-25% discounts on as-yet unspecified consumer goods for all citizens, and will spend between EGP 10-12 bn to subsidize a 10% discount for ration card holders. In addition, a new holding fund will be used to guarantee up to EGP 2 bn in consumer loans and mortgages in an effort to encourage lending, and provide cheap financing for consumers to engage in government projects such as the installation of dual-fuel engines into cars.