The new standards issued by the Central Bank of Egypt (CBE) to give loans to Small and medium-sized enterprises (SMEs) will provide new jobs and cut unemployment rates, which reached 12.8 percent last September, said International rating agency Moody's.

The measures adopted by the CBE last Monday support economic recovery in Egypt through reviving investment, it added.

Beside the reforms which aim to promote economic growth, Moody's said that the CBE's standards aim to support national economy and improve Egypt's credit rating, which was determined by Moody's as B with a stable outlook.

Last Monday, the CBE issued directives to all banks to increase financing of small and medium-sized enterprises nationwide.

The bank said it would require lenders to apportion 20 percent of their total loaning portfolio for SMEs, with interest rates below 5 percent imposed on firms.