Regulatory Alerts2016-02-23
Circular dated February 23, 2016 amending the initiative to support the tourism sector
In February 2016, the Governor of the Central Bank of Egypt and Chairman of the Board of Directors, in consultation with all relevant parties, agreed to make changes to the regulatory framework. These changes will allow: 1) The rescheduling of all overdue facilities (either extended or restructured), deferring principal repayments for up to three years, based on each bank's individual circumstances and without considering any benefits of delaying these payments. This applies to the entire period since the Central Bank's establishment. 2) The non-consideration of pre-established facilities in excess of those set by law when it comes to granting each free bank the flexibility to adjust its required facilities and avoid receiving returns for up to three months during this period. 3) A moratorium on new funding requests to extend facility repayments for up to three years, with a maximum ceiling. The Central Bank will treat these limits as guiding principles that banks must examine individually and make appropriate decisions concerning them. 4) Continuation of existing educational requirements without amendment in areas not covered by the revised legislation. They have kindly accepted the **highest appreciation**