The housing, financing, and tourism ministries are set to shoulder the cost of supporting five low-interest financing initiatives, instead of the Central Bank of Egypt (CBE), as per a decree issued by Mostafa Madbouly, Prime Minister of Egypt, Invest-Gate reports.
The decree applies to the low-income mortgage initiative, the initiative supporting the tourism sector, the vehicles conversion initiative, the low- and middle-income mortgage initiative, and the modern irrigation methods initiative.
The decree stipulates that the Ministry of Finance shall manage and monitor all existing low-interest initiatives, including taking relevant decisions and setting regulations determining the beneficiaries, cost, schedule, and the authority executing each initiative.
The decree also prohibits any entity or authority, including the CBE, from preparing, drafting, or financing any new initiative or conducting any modifications to an existing initiative causing direct, indirect, potential, or expected financial burdens on the Public Treasury without approval from the Cabinet based on a study by the Ministry of Finance.
Upon violating the previous clause, the decree stipulates that the Public Treasury will not give any relevant reimbursement.