Central Bank of Egypt’s (CBE) newly-issued regulations for consumer loans for car purchases create headwinds for automotive car sales as nearly 40% of consumers finance purchase in instalments, said Adel Bedeir, Head of the Vehicles and Other Transport Division at the Federation of Egyptian Industries (FEI). The CBE had decreased the lending limit to consumers to 35% of the borrower’s net income, down from c50-60%, limiting the variety of vehicles that can be afforded. Bedeir added that the automotive market’s recovery is further challenged by companies’ ability to source the foreign currency needed through obtaining letters of credit for both fully assembled car imports in addition to parts. (Al Mal)