A number of gold manufacturers called on local banks to provide financing tools from gold ore, instead of cash, to be pumped into the goldsmiths manufacturing and trading sector.
“The gold sector in Egypt still needs to develop the financing mechanisms in order to expand its activity,” Hany Baqi, Chairman of the Board of Directors Manager Gold Company for gold manufacture, said.
In addition, Baqi pointed out that local banks can offer new financing tools that contribute to stimulating the gold and jewelry sector by providing loans for gold ore instead of cash.
He also suggested developing financing programs that allow companies and retail stores to obtain gold ore instead of money. For example, the factory obtains 100 kilos of gold with interest determined by the banks, with the customer returning the same loan weight as 100 kilos of gold.
Baqi stated that the mechanism would pave the way to great investment opportunities in financing medium and small projects within the gold sector.
He also affirmed that banks might preserve their rights through the necessary terms and conditions, whether with guarantees for companies, manufacturing equipment and retail stores.
Finally, the Chairman highlighted that this policy is applied in many countries, including Dubai which grants companies and the gold sector loans of gold ore for use in the development.
Contributed by Omnia Ahmed