Al Alaam Al Youm Newspaper
Credit Guarantee with Egypt Factors
Raised to LE 2,500,000
Mr. Mohammed Abdel Hamid, Chairman and Managing Director of the Credit Guarantee Corporation (C.G.C.), announced that the credit ceiling for Egypt Factors has been raised to 2,5 million Egyptian Pounds instead of one million, stating that Egypt Factors seeks to expand the internal-trade and factoring dealings in Egypt through the Credit Guarantee Corporation.
Mr. Abdel Hamid added that a Cooperation Protocol is planned to be signed between the Export Credit Guarantee of Egypt (E.C.G.E) and the Credit Guarantee corporation (C.G.C.) next week; whereby E.C.G.E. is to finance production requirement for export-eligible companies while C.G.C.is to finance internal trade at credit ceiling of 2.5 Million Egyptian Pound per customer and a credit rate of 50%.
He added that Cairo Chamber of Commerce, in cooperation with ECGE and CGC , is to hold a symposium next Monday to discuss the means to support internal trade and open new scope of finance.
Moreover, the C.G.C. Board of Directors, chaired by Mr. Mohammed Abdel Hamid, approved a raise of C.G.C credit ceiling to LE 2.5 million instead of LE 2 million. Therefore, the credit guarantee rates, as per the C.G.Capplied programs, were raised as follows:
• For the small and medium enterprises, the credit guarantee rate has been raised to 75% instead of 50%.
• The credit guarantee rates provided by the Commercial International Bank and the Industry Modernization Projects for working capital finance has been raised to 75% instead of 50%.
• For the medical programs; the categories of up to LE 250,000 are granted credit guarantee rate of 100% instead of 85%. Meanwhile, the categories of more than LE 250,000 are granted credit guarantee rate of 75% instead of 65%.
• For the power rationalization projects, the credit guarantees rate remains as is, i.e., 100%.
Mr. Mohammed Abdel Hamid, C.G.C. Chairman, stated that a number of symposia were held with the banks dealing with targeted sectors to activate the C.G.C credit guarantee mechanism for the benefit of the largest possible base of customers and banks. These symposia were convened in January, February and March in the Governorate of Lower Egypt, Ismaelia, Alexandria and Matrouh, and that further symposia were held with the Chamber of Commerce in Damietta.
Mr. Abdel Hamid also added that an agreement for micro-activities was signed by C.G.C and Fowah Future Businesswomen Association, whereby the two parties are to cooperate to establish and operate service units in support of the small and emerging enterprises in the Governorate of Kafr El Sheikh. He expected that the raise in credit ceiling would encourage banks to provide further credits and loans to the categories targeted by C.G.C programs.