2012-05-08

Postponing the deduction of additional impairment losses calculated for owning shares in non-financial companies whose value exceeds 40% of the company’s issued capital.

The letter is addressed to the Chairman of the Board of Directors of a bank, informing him of a decision made by the Central Bank of Egypt regarding the measurement of additional impairment losses for non-financial company shares owned by the bank. The Central Bank decided that if the value of the shares exceeds 40% of the company's issued capital, the loss should be recognized in the income statement. This decision aims to mitigate the impact on bank profitability and maintain financial stability during the current crisis. The letter also mentions specific instructions for implementing this decision, including the timeframe for disposal of the shares and the accounting treatment of the losses.

Egypt

Central Bank of Egypt

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