Regulatory Alerts2020-03-19
A circular dated March 19, 2020 regarding amending the special interest rate for a number of Central Bank initiatives
The Central Bank of Egypt has announced changes to certain facilities provided in previous guidelines issued on December 12, 2019, and March 17, 2020. The bank will adjust the interest rate on the following loan programs by reducing it from 10% to 8%: the private sector credit facility, mortgage finance for middle-income earners, and funding for hotels and transportation services. Banks will also offset the interest rate difference using the same mechanism. Moreover, the current terms of these facilities will remain unchanged. Finally, the interest rates applied to borrowers who have previously benefited from these facilities will be adjusted with a new interest rate applicable from the specified date, taking into account an increase or decrease by up to 8%.