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Egypt’s companies to repay debts in installments, at fixed exchange rate

by ChemOrbis Editorial Team - content@chemorbis.com
  • 30/12/2016 (15:02)
According to media reports, Egyptian companies have the approval of the Central Bank of Egypt to repay their foreign currency debts in installments in one to three years. The bank also agreed that setting a fixed US dollar exchange rate is possible upon the request of each company.

The decision aims to deter companies and factories from declaring bankruptcy because of their debts resulting from the volatility of the exchange rate between Egyptian pound and foreign currencies, the reports revealed. Accordingly, the banking sector will allocate EGP 10 billion with a 12% interest rate to lend to companies whose revenue is below EGP 1 billion per year and another EGP 10 billion with the same rate to industrial developers.

Egyptian companies are complaining that they are facing bankruptcy because they are asked to repay bank loans at the latest exchange rate even if they make their sales with the old exchange rate.
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