2018-01-03

Circular dated January 3, 2018 regarding the recognition of the credit risk guarantee company’s guarantee

In a letter dated January 3, 2018, the Central Bank of Egypt announces initiatives to encourage financing for micro, small, and medium-sized enterprises, including requiring banks to allocate 20% of their credit portfolios to these businesses by 2020. To mitigate credit risks, especially for projects lacking sufficient guarantees, the Bank approved a 2 billion Egyptian pound guarantee to Credit Guarantee Company (CGC) in exchange for CGC issuing guarantees to banks for SME financing. The letter also outlines regulatory instructions regarding minimum capital adequacy standards and credit risk mitigation, with banks in Egypt required to comply from the end of December 2017.

Egypt

Central Bank of Egypt

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