L.E 1.8 billion allocated to lend consumers

CBE agreed yesterday to allocate L.E 1.8 billion at an annual 4 percent interest rate to Egyptian banks that will offer this sum as loans to the public at an interest rate of no more than 6 per cent per annum to be used for buying Egyptian products.

CBE asked banks to come up with fixed programs, regulations and control for utilizing this amount as soon as possible. The measure was agreed upon during a meeting of the CBE board under the chairmanship of its Governor Mahmoud Abu el-Eyoun.

Emerging from the meeting, Abul Eyoun said that the step came in light of the role of the banking system in backing different economic sectors to weather current recession.

He added that Egyptian banks would not stop providing the foreign currency for different national sectors. He highlighted the necessity of continuing the current exchange system to function flexibly.

"The Central Bank of Egypt (CBE) is considering to form a committee to file complaints from foreign exchange companies and hold periodic meetings with their representatives," Abul-Eyoun said.

He said the committee would be formed on the condition bureaux de change that maintain their commitment to CBE foreign exchange policies.