According to a survey conducted by the Central Bank

62% of SMEs expect an increase in net profits

The Central Bank: The participating banks expressed positive response to the “know your customer” requirements.

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The Central Bank said that 62% of small and medium-sized companies participating in a survey it conducted expect an increase in net profits, while 60% of those companies expect an increase in sales during the current year and beyond.

The Central Bank explained that the crisis of the “Covid-19” pandemic, led to “business” becoming more resilient and flexible to adapt to new challenges, and this is reflected in the general expectations of micro, small and medium enterprises regarding the performance of their net profits in 2021 compared to 2020, as 62% of the companies participating in the survey expected an increase in their net profits in 2021 compared to 2021, while 23% of the companies expected profits to remain the same, and 15% expected a decline in profits.

credit and liquidity

In the survey report, the Central Bank stated that two-thirds of the companies participating in the survey expected credit to recover in the third quarter of 2021 and beyond, noting that most small, medium and micro enterprises, with a rate of 79%, do not expect a shortage of liquidity due to « Covid-19” in the near future, mostly due to the advantages granted within the targeted comprehensive economic support plan facilities, issued by the Central Bank, including deferrals of installment payments, which were extended for the first time until the end of June 2021, and then to the end of the year. The Central Bank indicated that, with that, the risks are greater for micro-enterprises and companies in the service sector.

job recovery

In the results of its survey, the Central Bank indicated that small and medium enterprises expect job recovery to take some time, following the reduction of the number of employees and an increase in the time to reach the new normal, which may not reach pre-pandemic levels.

Positive Banks

The Central Bank indicated that the banks participating in the questionnaire expressed positive response to the “know your customer” requirements for micro, small and medium enterprises, as 57% considered them “appropriate”, while the remaining (43%) found them “easy to implement.”

According to the questionnaire, only 55% of micro, small and medium enterprises had audited financial accounts, and 71% of the banks included in the survey reported that audited financial statements facilitated their lending to micro, small and medium enterprises, and 57% of the respondents confirmed Respondents to the survey that audited accounts made it possible to reduce borrowing costs.

• 79% of small establishments do not expect a shortage of liquidity due to "Covid-19" in the near future.

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