Egypt’s central bank will provide up to 100 billion Egyptian pounds ($6.36 billion) in loan guarantees to banks to encourage lending to businesses during the coronavirus crisis, the state news agency quoted the bank’s governor as saying on Tuesday.
What Egypt is putting aside as fire power to stimulate its much smaller economy and was in a much healthier shape is several times bigger than Nigeria’s paltry stimulus.
Central bank governor, Tarek Amer, told the agency: The decision comes during “increased business risks in the market, especially with regards to companies and finance.”
The loans will carry an interest rate of 8%, well below the central bank’s key overnight lending rate of 9.25%.
The coronavirus pandemic has wreaked havoc on Egypt’s economy, particularly with the virtual shutdown since March of the country’s tourism industry, which represents about 5% of gross domestic product, and the closure of restaurants and cafes.
