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