Regulatory Alerts2019-04-08
A circular dated April 7, 2019 regarding discounting commercial papers submitted by real estate development companies
The Egyptian Central Bank Governor, Tarek Amer, has announced that banks must not offer additional loans to real estate development companies listed on the stock market. He also stated that the total outstanding loans from banks and affiliated entities should not exceed 15% of a bank's total retail lending, with no more than 30% of the bank's retail loan portfolio allocated to real estate developers. Additionally, the combined debt of any listed real estate development company and its associated entities cannot surpass the limit set by the Central Bank under Law No. 162 of 2015 or 60 days from the due date, whichever is less. The bank must also follow guidelines issued by the Financial Regulatory Authority on February 2019, and there should be compliance reports published by the Financial Supervisory Authority according to International Reporting Standards (IFRS) since June 2005 and April 2006. Banks must disclose information monthly according to TSRE guidelines.