Regulatory Alerts2024-07-01
A circular dated May 2, 2024 regarding the rules of ownership of bank capital, mergers, divisions, and acquisitions
Dear all, Based on the temporary exemption for unorganized small and medium-sized enterprise (SME) loans from applying International Financial Reporting Standards (IFRS) No. 9, as stipulated in the Annual Report dated December 14, 2021, and the Annual Report dated June 14, 2023 on extending this exemption until June 2024, the Central Bank of Egypt's Board of Directors has decided at its extraordinary meeting held on June 25, 2024 to approve the following: - Gradually end the temporary exemption for SME loans by including employees in the third phase within a period of 18 months until December 2025. This means that these workers will be included in the third phase if they do not meet the conditions for loan deferral agreements, as follows: - Having overdue debts equal to or exceeding 180 days until December 2024; - Having overdue debts equal to or exceeding 150 days until June 2025; - Having overdue debts equal to or exceeding 120 days until December 2025; however, this will only happen if there are outstanding debts of 90 days or more since January 2026. - The employment period in the special program for upgrading employees from the third phase to the second phase, provided that all the required and specified conditions for the second phase are met and payments are settled for a period of 90 days; this will happen until December 2025. I would like to express my sincere thanks. Best regards,