Reports in Egypt indicate that the Central Bank of Egypt (CBE) is contemplating restricting the volume of letters of credit (L/Cs) made available for automotive imports.

National Bank of Egypt and Banque Misr are already restricting L/C openings one banker told local media.

Import L/Cs

Banking sources told Daily News Egypt that the CBE will restrict opening import L/Cs for fully-manufactured cars, but it will continue to provide hard currency to import car parts to be assembled in Egypt.

Banks have approved all requests and will continue to provide US dollars for importing car components for local assembly.

Manufacturers hit

The source said several L/Cs have been postponed for companies seeking to import cars, including GB Auto, Mansour Chevrolet, Toyota Egypt, and Nissan Egypt.

Car imports increased substantially in 2015, despite several price rises. The state's strategy to curb imports in 2016 may force prices even higher this year.

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