Regulatory Alerts2024-04-07
A circular dated March 6, 2024 regarding reviewing and purifying foreign exchange management requests reports
The Egyptian Central Bank Governor, and the head of Banque du Caire, has informed that the Council of Ministers approved on March 7th a funding initiative for private industrial and agricultural companies. The board of directors of the bank has decided to modify some of the initiative's guidelines starting April 4th, 2024 as follows: 1. The interest rate paid by customers will rise from 11% to 15%, but it may be reviewed within three months or when the loan interest rate and discount rates are adjusted. 2. The maximum loan amount for one client will increase to 100 million Egyptian pounds, up from 75 million Egyptian pounds. This is aimed at allowing the client and related parties to borrow a total of up to 150 million Egyptian pounds. 3. These changes will apply to all new loans and installments starting from now, with the previous 11% interest rate still applicable to used portions in previously agreed-upon contracts, until this decision is implemented (up until the repayment date) considering that there are active credit agreements for medium-term loans and used balances for funding working capital. Note: Please take note of the measures taken in this matter. We also request your acceptance of these changes.