The overnight lending rate at the CBE reached 28.25%, imposing significant burdens on borrowing companies with high debt levels. The higher the interest rates, the greater the impact, especially for those with debts in foreign currency. She advised the borrowing companies to work on providing liquidity, which may take some time, to try to overcome the negative impact of the interest rate hike. Qalaa Holdings, one of the largest borrowers on the Egyptian Exchange, faces a significant impact from the rise in interest rates. He expected that interest rates would drop gradually in the medium term.

Source: Daily News Egypt March 11, 2024 14:57 UTC