Circular dated December 19, 2019 amending the ratio of consumer loans to total monthly income

Cairo, December 19, 2019

Dear Chairman of the Board,

Greetings,

In light of the improvement in economic indicators and the rise in Gross Domestic Product, and with reference to the circular issued by the Central Bank of Egypt dated January 11, 2016 and its subsequent circulars regarding the determination of the ratio of loans granted to individuals for consumer purposes to their monthly income at 35%, this ratio is increased to reach 40% in the case of granting housing loans for individuals in accordance with Law No. 148 of 2001.

And in light of the intensive monitoring of financial bank indicators, the Central Bank of Egypt has deemed it appropriate to modify the aforementioned ratio by raising the maximum limit of the total installments of loans for consumer purposes (personal loans, credit card facilities, and loans for the purpose of purchasing cars for personal use) to become 50% of the total monthly income, including housing loans for individuals at a ratio of 40% of the total monthly income.

Please be so kind as to alert to taking the necessary action to implement the above from its date, noting that performance indicators will be monitored periodically and the aforementioned ratio will be reviewed if the situation requires.

Please accept our highest regards,

Tarek Amer