EGYPT, 28 March 2022: The Agricultural Bank of Egypt (ABE) announced an increase in agricultural credit categories of 25 per cent to support small-scale farmers in the face of rising prices for inputs and production.
Alaa Farouk, the Chairperson of the ABE, was cited in a local media as saying that the Bank has taken these urgent measures to keep pace with the current global and local changes in an attempt to mitigate the effects of the global rise in the prices of commodities and production requirements, especially in the agricultural sector. This step will support small-scale farmers and rural residents, who represent more than 60 per cent of Egyptians.
Furthermore, he said that these measures are aimed at strengthening the state's efforts to sustain the performance of the Egyptian economy and meet its needs. President Abdel Fattah Al-Sisi directed state institutions to take the necessary steps to relieve the burden on citizens' backs. This step is in line with the CBE's initiatives.
In addition, Farouk stated that farmers and small-scale farmers are the segments that are most likely to benefit from the 25 per cent increase in credit categories approved by the Bank because it will enable them to absorb price increases so their ability to produce continues. This ultimately benefits the agricultural sector and Egyptian farmers to improve their overall living standards. In cooperation with the Minister of Agriculture Elsayed Elkosayer, the bank is eager to issue a decision as soon as possible.
The bank will increase agricultural funding loans over the coming period in order to expand the pool of agricultural loan beneficiaries, said Farouk, noting that around EGP 12 billion were pumped into agricultural loans over the period of June 2020 to December 2021.
In coordination with the relevant government agencies at the Ministry of Agriculture, the bank grants agricultural loans with a subsidized interest rate of 5 per cent to support small-scale farmers.
Image credit: medium.com
