Regulatory Alerts2013-01-14
Allowing banks to temporarily refinance import operations in foreign currency
Greetings, In reference to Article (19-H) of the implementing regulations of the Central Bank and Financial Institutions Law No. 88 for fiscal year 2003, which stipulates that facilities or financial assistance granted with foreign currency shall help customers settle their obligations; Considering the recent directives from the Central Bank of Egypt aimed at preserving foreign currency reserves and maintaining economic stability amidst current circumstances, banks are now allowed to: - Establish a mechanism for prioritizing requests from clients for purchasing foreign currencies within available resources. - Grant temporary financing facilities in foreign currencies that clients can repay upon currency settlement, considering the credit risk assessments conducted by banks on their clients. I kindly request your attention and cooperation, and please accept my best regards, Jamal Najm