The Central Bank of Egypt (CBE) resolved the problem of the temporary facilities obtained by companies from banks in foreign currency, the values of which have increased following the flotation of the pound as a result of the currency price differences, according to Gamal Negm, deputy governor of the CBE. Negm told Daily News Egypt that banks will obtain a 3.62% return on debt from companies that owe more than $5m and have annual sales worth EGP 500m. The CBE earlier allowed banks—prior to the flotation of the pound—to provide customers with temporary facilities in foreign currency to cover their imports and to obtain liquidity in local currency to cover the value of these facilities by 110%. He noted that the interest rate difference will help these companies to cover the value of their own debts in banks. Some companies have covered 110% of their debts; while other companies have not covered their debts so far.

Source: Daily News Egypt April 02, 2017 11:15 UTC