Ts & Cs of new subsidized loans: The Central Bank of Egypt (CBE) is capping the funding provided for a single individual at EGP 75 mn and a total of EGP 112.5 mn per individual and all related parties under the new subsidized lending program for industry and agriculture players, the bank said in a statement (pdf) laying out the terms and conditions yesterday.

REMEMBER- The government introduced a new EGP 150 bn subsidized loan program for industry and agriculture last year shortly after the central bank announced it would stop handing out soft loans as part of the loan agreement with the IMF. The IMF agreement required the central bank to transfer responsibility for funding subsidized loans to the state, which is now offering industrial and agricultural companies 11% loans, slightly more expensive than the CBE’s previous 8% rate.

Also worth noting: The vast majority of the funding (EGP 140 bn) will go towards funding working capital while the remaining EGP 10 bn will finance the purchase of machinery and equipment. The program will last five years and the Finance Ministry will bear the cost of financing the interest rate.