Regulatory Alerts2016-06-08
A circular dated June 8, 2016 regarding the detailed memorandum on the initiative for medium-sized companies operating in the fields of industry and agriculture.
In a letter dated June 8, 2016, the Central Bank of Egypt's Governor addresses the Chairman of the Board of Directors of a bank, providing detailed rules and procedures for implementing the bank's initiative to encourage financing of equipment, production lines, and medium-sized industrial and agricultural companies. The letter emphasizes the need for banks to make their best efforts to provide financing to small and medium-sized enterprises and overcome any obstacles they may face. It also outlines the purpose of the initiative, its implementation and monitoring mechanism, and the method and periodicity of installment and return payments. The Central Bank of Egypt will closely monitor banks' compliance with the initiative's terms and the quality of the resulting portfolios.