Amending the controls of banks’ money market funds

Cairo, 9 May 2013

Mr. / Chairman of the Board of Directors
Bank

Greetings,

I would like to refer to the decision of the Board of Directors of the Central Bank of Egypt in its meeting held on 3 June 2008 regarding the controls that banks established money market funds (Money Market Funds) must observe and adhere to, at least. And in the context of the continuous efforts of the Central Bank of Egypt to ensure the safety of the performance of the banking system in light of the increase in growth rates in the activity of those funds, and in light of the observation of the similarity in the investment aspects of fixed income funds (Fixed Income Funds) in cash or cash-like instruments, and in accordance with their investment policy to a certain extent with money market funds, I would like to conclude with the following:

First: Amending the decision of the Board of Directors of the Central Bank of Egypt mentioned above by reducing the maximum limit for the bank's participation in the total of its money market funds to become 2% of the paid-up capital, from 5%, while ensuring that the mentioned ratio includes the total participation of the bank in fixed income funds. This is while the rest of the rules contained in the aforementioned decision remain in effect.

Second: The necessity to observe that the maximum limit for the total amount of funds invested in the total of the bank's money market funds and fixed income funds does not exceed 7.5% of the bank's total local currency deposits and/or fifty times the limit mentioned in the first item, whichever is lower, while observing the provisions of Capital Market Law No. 95 of 1992 and its executive regulations, especially Article 150 of the Executive Regulation of the Law and related instructions issued in this regard.

Third: Banks that exceed the limits mentioned above must stop issuing any new investment documents, whether for existing or new clients, until they comply with these limits.

Please proceed to take the necessary steps to implement the above,

With highest regards,

Hisham Ramzy Abdel Hafez

First tranche after exclusions according to the decision of the Board of Directors of the Central Bank of Egypt dated 18 December 2012 regarding the minimum standard for 1.06 of paid-up capital according to Basel II decisions