Regulatory Alerts2020-12-29
A circular dated December 30, 2020 regarding the Credit Risk Guarantee Company’s guarantee account for calculating the maximum limits for the bank’s investments with a single client and related parties.
In a letter dated December 30, 2020, the Chairman of the Central Bank of Egypt, Tarek Amer, addresses the management of a bank regarding the calculation of the maximum limit for the bank's employment with a single client and its related parties. The letter refers to previous circulars and instructions on this matter, including those issued on September 23, 1996, March 5, 2006, January 11, 2016, and October 13, 2019. The Central Bank of Egypt's Board of Directors, in its meeting on December 13, 2020, decided to exclude the portion of credit facilities guaranteed by the Credit Risk Guarantee Company when calculating the maximum limit for the bank's employment with a single client or its related parties. The excluded guarantee balances are to be added to the bank's employment with the Credit Risk Guarantee Company, excluding those covered by the commitments of the Central Bank of Egypt.