2018-01-03

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

In December 2017, the Central Bank of Egypt's board approved guidelines to ensure small and medium-sized enterprises have access to credit guarantees. This involved allocating 20% of banks' guarantee funds for this purpose. The bank also issued a $2 billion bond to a credit guarantee company in return for its companies issuing guarantees to the banks for part of their risks relating to financing small and medium-sized enterprises. These measures were established to address regulatory caps on the minimum acceptable capital ratio as per guidelines released in 2012 regarding credit guarantees, as well as guidelines issued by the Egyptian Central Bank board in May 2005 concerning the calculation of the required capital.

Egypt

Central Bank of Egypt

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