Amending instructions for money market funds

Mr. Chairman of the Board of Directors
Cairo, December 8, 2014
Bank Tahya Misr

And after,

With reference to my letter No. 108 dated May 9, 2013, regarding the controls that banks established for Money Market Funds must observe and comply with as a minimum, I would like to inform you that the Board of Directors of the Central Bank of Egypt decided in its meeting held on December 2, 2014, to amend the aforementioned instructions to read as follows:

1. The maximum limit for the total volume of funds invested in the aggregate of money market funds and fixed income funds belonging to the bank shall not exceed 7.5% of the bank's total local currency deposits and/or fifty times the bank's capital (replacing the maximum limit for the bank's participation in the aggregate of its money market funds, which was previously set at 2% of capital, whichever is lower), subject to the provisions of Capital Law No. 95 of 1992 and its executive regulations, particularly Article 150 thereof and the relevant instructions issued in this regard.

2. Emphasizing the necessity that subscribers in these operations be only the bank's customers, with the necessity of completing Know Your Customer (KYC) procedures to verify the seriousness of these customers.

3. Granting a deadline, for existing subscribers who are not bank customers, of a maximum of 6 months to regularize their status in accordance with the previous clause, and in case any of these subscribers wish to increase their investments, they must comply with the provisions of clause (2) at that time.

4. Banks that have exceeded the limits stated above must stop issuing any new investment documents, whether for existing or new customers, until compliance with these limits is achieved.

Please accept the highest respect,

Hesham Ramzy Abdel Hafez

First tranche after exclusions according to the Central Bank of Egypt Board of Directors decision dated December 18, 2012, regarding the minimum limit for the capital adequacy standard according to Basel II decisions.