Monday Minutes:

A summary of last week’s major macroeconomic updates and indicators brought to you on one page for your convenience.

May 11 to May 18 Coverage:

CBE is allowing construction companies with annual revenues of EGP 50 million or more to leverage its EGP 100 billion initiative, through giving loans at an 8% annual decreasing interest rate, aiming to support the manufacturing sector.

The MPC decided to keep the overnight deposit rate, overnight lending rate and the rate of main operation unchanged at 9.25%, 10.25% ,and 9.75%, respectively, CBE reported, adding that the discount rate was kept at the same levels of 9.75%.

The Ministry of Finance is issuing a guarantee of EGP 3 billion to fund the hotels and tourist facilities at an annual interest rate of 5%, in addition to exempting hotel and tourist facilities from real estate tax for six months under the aim of supporting the tourism sector.

Finance Minister, Mohamed Maait, said that Egypt seeks to keep the economic track secured in light of coronavirus after obtaining approval for IMF emergency assistance. He added that the government allocated 2% of the GDP to fulfill the urgent needs for supporting health and community safety, according to the Ministry of Finance.

According to the Ministry of Finance, Egypt allocated an assistance loan of EGP 2 billion for supporting the civil aviation sector.

The Ministry of Finance showcased the efforts exerted by customs to facilitate procedures for the business’ community, noting that EGP 3.5 billion were collected as customs fees at Port Said and Ain El Sokhna ports during April.

The Cabinet announced that the World Bank approved to allocate $50 million for Egypt as an emergency response in the framework of the Global Fast Track Facility estimated at $6 billion to fight the COVID-19 pandemic.

CAPMAS announced that the unemployment rate declined to 7.7% during the Q1 2020, in comparison to 8.1% during Q1 of 2019 and 8% during the Q4 of 2019. However, the initial indications during April demonstrated an increase in the unemployment rate to 9.2% due to the coronavirus pandemic.

Moody’s has set Egypt’s Credit Rating unchanged at B2 with a stable outlook due to the credit ongoing strengths and challenges that are unlikely to change during the coronavirus pandemic.

The Minister of Finance, Mohamed Maait, said that Egypt collected total taxes and fees from Alexandria and Al Dekheila customs of EGP 4 billion during April, According to Al Ahram.