2012-05-10

Reducing the cash deposit for documentary credits or promissory notes for the account of merchants for trading or for the account of government agencies from 100% to 50%.

The letters discuss the requirement for banks to obtain 100% cash collateral for letters of credit issued to finance the import of goods for trading or for government entities. This requirement also applies to bills of exchange presented under supplier credit facilities for the same purpose. The second letter clarifies that banks can set the cash collateral percentage on a case-by-case basis, with a minimum of 50%, based on their credit policies and studies of their clients.

Egypt

Central Bank of Egypt

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