Allowing banks to temporarily refinance import operations in foreign currency

Greetings and after,

With reference to Article (19 h) of the Executive Regulations of the Central Bank, Banking System and Currency Law issued by Law No. 88 of the year 2003, which stipulates that "granting financing or foreign currency credit facilities must be accompanied by the availability of foreign currency resources with the client to assist in repayment", and also with reference to the credit granting guidelines issued by the Central Bank of Egypt, and in particular the letter from the Governor dated February 25, 2003, containing "banks shall not provide any credit facilities to their clients in foreign currency and shall not provide financing for any activity in foreign currency unless it is fully confirmed that the client has foreign currency resources committed to be used for repayment".

In light of the recent directions of the Central Bank of Egypt aimed at preserving foreign currency resources and economic stability while containing the repercussions of the current period the country is going through, banks are allowed to do the following:

• Establish a mechanism to determine priority for their clients' requests to purchase foreign currency through the bank's available resources.

• Allow banks, on a temporary basis, to refinance their clients' import operations by granting a temporary foreign currency facility limit, from which deductions will be made until the currency is secured, based on the credit studies that banks conduct for their clients individually.

Please be informed and take the necessary action in this regard,

And accept our highest respect,

Gamal Naguib