Other Economies

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 21,221
% of GDP (2019): 6.26%
% of Regional Total Package: N/A
Package Per Capita in USD: 215.60
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline
01A - Short-term lending info_outline

(i) No amount/estimate: Short-term loans of up to a year were made available to allow small projects harmed by COVID-19 (especially in industrial and labor-intensive sectors) to pay for their operational expenses until the crisis is over.

01B - Support policies for short-term lending info_outline
01C - Forex operations info_outline
02 - Credit creation info_outline EGP106,000,000,000 USD6,745,159,653
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

No amount/estimate: (i) March 20, The central bank has reduced the policy rate by 300 bps to 9.25%; (ii) March 24, preferential interest rate on loans to tourism has been reduced from 10% to 5%, for SMEs. As of June 24, this measure has already been reversed [update]; (iii) March 24, preferential interest rate on loans to industry and housing for low-income and middle-class families has been reduced from 10% to 8%. As of June 24, the new rate now applies to tourism, industry, agriculture and construction sectors as well. [update] (iv) regulations issued last year requiring banks to obtain detailed information of borrowers have been relaxed; (v) suspension of credit score blacklists for irregular clients and waiver of court cases for defaulted customers have been announced.

02C - Loan guarantees EGP106,000,000,000 USD6,745,159,653

(i) EGP3 billion of loan guarantees by the government has been announced for the tourism industry soft loans; (ii) EGP100 billion of loan guarantees from the Central Bank to cover lending at preferential rates to the manufacturing, agriculture and contracting industries; (iii) June 16, EGP3 billion in loan guarantees to the Tourism sector. [update]

03 - Direct long-term lending info_outline EGP100,000,000,000 USD6,363,358,163
03A - Long-term lending info_outline EGP100,000,000,000 USD6,363,358,163

No amount/estimate: (i) Loans with a two-year grace period will be made available to aviation sector firms; (ii) Central Bank introduced credit lines that can be paid over a maximum of two years with a six-month grace period, specifically for tourism enterprises to facilitate paying of salaries and financial dues for suppliers; (iii) June 18, EGP100 billion in funding accessible to all SMEs in the industrial, agricultural, and contracting sectors. [update]

03B - Forbearance

No amount/estimate: (i) March 24, The government also introduced a six-month extension for credit repayments targeting all individuals and businesses, as well as the waiving of late fines for such repayments; (ii) March 27, Mortgage financing companies, factoring and leasing companies mandated to give a six-month grace period to any client who asks; (iii) new debt relief initiative for individuals at risk of default has also been announced, that will waive marginal interest on debt under EGP1 million if customers make a 50% payment; (iv) Microlenders have been instructed to also consider delays on a case-by-case basis, of up to 50% of the value of monthly installments for struggling clients.

04 - Equity support info_outline EGP20,000,000,000 USD1,272,671,633

EGP20 billion stock-purchase program has been launched by the Central Bank.

05 - Government support to income/revenue EGP107,480,000,000 USD6,839,337,353

Multiple packages have been announced by the government to mitigate the economic impact of COVID-19, totalling over EGP102 billion: (i) March 22, EGP100 billion (1.8% of GDP) or USD6.13 billion was announced as the total of stimulus policies to be enacted by the government to mitigate the economic impact of COVID-19; (ii) March 24, EGP1 billion additional funding for health services; (iii) April 2, additional USD7.9 million disgnated for emergency respone activities related to the outbreak; (iv) EGP1 billion in arrears will be paid out to exporters. More data on the breakdown of these packages below.

05A - Health

(i) March 22, EGP8 billion has been allocated to support the healthcare sector, targeted at providing urgent and necessary medical supplies, and disbursing bonuses for medical staff working in quarantine hospitals and labs; (ii) March 22, To support medical professionals, including doctors working in university hospitals, a 75% allowance over the wages has been announced; (iii) March 24, EGP1 billion (USD63.5 million) additional funding was announced, specifically for health services and various measures to increase the country’s capacity to absorb the sudden increase of critical patients that the outbreak might bring; (iv) April 2, additional USD7.9 million designated for emergency response activities related to the COVID-19 outbreak.

05B - Non-health

(i) No amount/estimate: March 22, Pension benefits have been increased by 14%; (ii) No amount/estimate: March 22, Expansion of the targeted cash transfer social programs, Takaful and Karama, are also being extended to reach more families; (iii) No amount/estimate: March 22, A targeted support initiative for irregular workers in most severely hit sectors has been announced, which will entail EGP500 in monthly grants for 3 months; (iv) No amount/estimate: March 22, Energy costs have been lowered for the entire industrial sector; (v) No amount/estimate: March 22, Real estate tax relief has been provided for industrial and tourism sectors, (vi) No amount/estimate: March 22, Subsidy pay-out for exporters has been stepped up, and discount on fuel price has been announced for the aviation sector; (vii) March 22, EGP50 billion of the EGP100 billion stimulus has been announced for the tourism sector, which contributes close to 12% of Egypt’s GDP, 10% of employment, and almost 4% of GDP in terms of receipts, as of 2019; (viii) No amount/estimate: The moratorium on the tax law on agricultural land has been extended for 2 years; (ix) No amount/estimate: The stamp duty on transactions and tax on dividends have been reduced; (x) No amount/estimate: Capital gains tax has been postponed until further notice; (xii) No amount/estimate: ATM withdrawal fees have been cancelled; (xiii) EGP1 billion in arrears will be paid out by The Export Subsidy Fund in March and April 2020, plus 10% in cash payments to exporters in June 2020; (xiv) No amount/estimate: Three months extension for the payment of property taxes for companies in the industrial and tourism sector; (xv) No amount/estimate: Extension of the individuals’ annual tax return filing deadline to 16 April instead of 31 March, and exemption of the tax returns online filing subscription fee for the use of the Egyptian Tax Authority online filing portal; (xvi) EGP50 million allocated by the Ministry of Workforce for irregular workers, including women, who lost their job due to the coronavirus; (xvii) June 17, EGP5.3 billion in exemptions to natural gas consumers from penalty fine for late payments. [update]; (xviii) June 21, Extended until September 15, 2020, the exemption from all fees & commissions for local transfers in EGP. [update]

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received EGP136,394,865,466 USD8,679,293,805
08A - Swaps info_outline
08B - International loans/grants EGP136,394,865,466 USD8,679,293,805
08B1 - Asian Development Bank
08B2 - Other EGP136,394,865,466 USD8,679,293,805

(i) April 2, USD7.9 million funds from the World Bank through activating the Contingency Emergency Response Component (CERC) under the “Transforming Egypt’s Healthcare System Project”, designated for emergency response activities related to the COVID-19 outbreak in Egypt. This measure is reflected in 5A; (ii) May 11, USD2.772 billion in emergency support from the International Monetary Fund to address the COVID-19 Pandemic; (iii) May 17, USD50 million in World Bank aid for Egypt as an emergency response under the new Fast Track COVID-19 Facility; (iv) May 27, USD0.5 million emergency assistance grant from the African Development Bank Group to Egypt to provide food relief, and to contribute to restoring the livelihood of vulnerable populations severely affected by the pandemic; (v) June 5, USD5.2 billion Stand-By Arrangement from the International Monetary Fund aims to alleviate the economic impact of the COVID-19 pandemic, helping maintain macroeconomic stability, strengthen the social safety net, and support reforms to spur private-sector-led growth and job creation; (vi) June 16,USD400 million provided by the World Bank as support for the Universal Health Insurance System, to protect the most vulnerable from high health expenses due to the pandemic [update]; (vii) June 17, Approved a EUR225 million loan to finance Egypt’s Electricity and Green Growth Support Program (EGGSP). The funding will help meet the Government of Egypt’s financing requirements in the light of the COVID-19 pandemic, and support a sound electricity infrastructure base. [update]

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

No amount/estimate: (i) March 20, The limit for electronic payments via mobile phones has been raised to EGP30,000/day and EGP100,000/month for individuals, and to EGP40,000/day and EGP200,000/per week for corporations; (ii) March 29, The central bank set a daily limit on all ATM disbursement per card to be EGP5,000, and limits to cash withdrawal and deposits at a bank branch to be EGP10,000 per individual, and EGP50,000 per corporate; (iii) The cost of transactions in the EGX will be reduced from 0.15% to 0.125% and from 0.15% to 0.05% for non-residents and Egyptian residents, respectively, and all spot transactions on EGX will be exempt from stamp duty; (iv) The National Bank of Egypt and Bank Misr announced a one-year deposit program with a 15% interest rate.

12 - Non-Economic Measures

(i) April 28, A Presidential decree published in the Official Gazette declared the state of emergency across the country for three months; (ii) The authorities have taken a host of precautionary measures to improve testing as well as to limit the community spread of the virus, including (a) setting up testing centers, (b) imposing a nighttime curfew, (c) temporarily closing places of worship, (d) temporarily halting all air travel, (e) encouraging civil servants to work from home in non-essential sectors, (f) closing all malls, gyms, sporting clubs, in-dining restaurants and cafes; (iii) Authorities have also suspended the export of all types of legumes for a period of 3 months and plan to start increasing strategic food reserves to meet domestic deman; (iv) Starting May 4, 2020, hotels have been allowed to operate at 25% capacity until June 2020 and at 50% capacity thereafter; (v) Egypt’s Health Ministry released a 3-stage plan outlining required procedures in preparation for the gradual easing of restrictions within the country.