The Central Bank of Egypt (CBE) on Sunday launched a seven billion LE pledge issuance initiative for the Credit Risk Guarantee Company, which aims to guarantee collateral balances issued by the company for banks to cover the partial risks needed to fund larger companies.
The CBE sent a letter containing the initiative’s details to several Egyptian banks, and published the initiative on its website, coming under governmental measures to contain the economic losses due to the coronavirus outbreak.
The Credit Risk Guarantee Company expanded its guaranteeing business to cover large companies and macro, small and medium projects.
This initiative aims to benefit clients utilizing the industrial, agricultural and contracting private sector initiative valued at approximately LE200 billion.
The initiative will continue for ten years or until the completion of the full amount of the pledge, whichever is sooner.
The CBE issued in 2017 a pledge of two million LE towards the Credit Risk Guarantee Company, aiming to guarantee collateral balances issued by the company for banks to cover part of the risks needed towards funding macro, small and medium companies.