Egypt Recovery Plan:
- The government has announced stimulus policies in the USD 6.13 billion package (EGP 100 billion) to mitigate the economic impact of COVID-19. and announced in May 2020 that 63 billion of the 100 billion had already been earmarked for coverage some urgent obligations relate to the following sectors:
Key measures – Health sector:
- To support the healthcare sector, EGP 8 billion has been allocated, targeted at providing urgent and necessary medical supplies, and disbursing bonuses for medical staff working in quarantine hospitals and labs. To support medical professionals, including doctors working in university hospitals, a 75 percent allowance over the wages has been announced.
Key measures – Citizen support facilities:
- A monthly cash subsidy of EGP 500 for affected workers for a period of 3 months (3 billion EGP)
- Issuing guarantees to provide additional financing for the purchase and provision of additional quantities of basic commodities (6 billion pounds)
- Increasing the tax exemption limit to 15,000 pounds annually.
- Introduce a reduced tax bracket of 2.5%
- Allocating EGP 50 billion for real estate financing for middle-income people.
- Adjusting the percentage of personal consumer loans to a maximum of 50% from total monthly income.
Key measures – Central Bank:
- The central bank has reduced the policy rate by 300 bps.
- The preferential interest rate has been reduced from 10 percent to 8 percent on loans to tourism, industry, agriculture and construction sectors, as well as for housing for low-income and middle-class families.
- Postponing all credit entitlements to institutional and individual clients, which include consumer loans, real estate loans for personal housing and loans for medium and small companies, for a period of 6 months, with no additional returns and penalties applied for late payment.
- Limiting cash transactions and facilitating the use of electronic payment methods and tools, while eliminating fees and commissions applied at points of sale and withdrawals from ATMs and electronic wallets for a period of 6 months, while exempting local transfers in Egyptian pounds for a period of 3 months from all commissions and related expenses in order to reduce cash transactions Because it may carry a threat to public health at the present time.
- It comes on top of the important sectors that were affected by the challenge and contributed to the significant decline in rates growth in the tourism sector, the Suez Canal, aviation, Real estate, Construction, Healthcare and foreign direct and indirect investment And remittances from Egyptians from abroad.