ban Egyptian Prime Minister, Dr. Mostafa Madbouly, All entities and agencies, including the Central Bank, must prepare or formulate any new financing initiative or amend the list that would entail direct or indirect financial burdens on the public treasury, foreseeable or potential, except after obtaining the approval of the Council of Ministers based on a study prepared by the Ministry of Finance.
Madbouly stressed that if this provision is violated, it is not permissible to claim any compensation from the public treasury in this regard, stressing that the Ministry of Finance will undertake the management and follow-up of future new initiatives or any modifications to existing financing initiatives in accordance with the controls and provisions contained in Resolution (No. 4151) for the year 2022. .
The Prime Minister’s decision stated that the Central Bank will provide, on a monthly basis, the relevant authorities to bear the cost of compensating the banks for the initiatives with all the data related to each initiative through reports to be agreed upon, and it will also provide those authorities and the Ministry of Finance with the total value of what has been deducted from the accounts of these agencies, in implementation This decision is made every three months starting from the first of November 2022.
The decision referred to the deduction of compensation for each initiative from the accounts of the concerned authority, which are three bodies: the Ministry of Finance, the Ministry of Housing, and the Tourism and Antiquities Support Fund.
Compensation is paid to banks every three months or according to the periodicals stipulated in the decisions issued by the Central Bank, and after the approval of the Central Bank, the discount timing may be modified.
The concerned authorities shall ensure the availability of sufficient balance in their account with the Central Bank to finance the cost of the initiative affiliated to them, and in the event of the inability to bear the cost, the Minister of Finance, in conjunction with the competent minister, shall present to the Council of Ministers a mechanism for procuring the required funding and take the necessary corrective decisions, one month prior to less than the due date of the next compensation amount.
According to the decision, in the event that the compensation value is due and it is not possible to have sufficient balance in the accounts of the entity concerned with the initiative, the deduction is made on the unified treasury account of the Ministry of Finance, and these amounts are collected and settled later in favor of the Finance as soon as there is sufficient balance in the account of the entity.
It is noteworthy that the Ministry of Finance will bear the burdens of the vehicle replacement and modern irrigation initiatives, while the Ministry of Housing will undertake the real estate financing initiatives for middle-income and real estate financing for low and middle-income people, while the Tourism and Antiquities Support Fund will bear the burdens of the initiative to support the tourism sector.