Regulatory Alerts2024-03-11 | CBE4.1.6Added · Updated
CBE Regulation Book 4.1.6: Import Operations Controls
The Central Bank of Egypt mandates a 100% cash collateral requirement for banks financing non-trade import operations, with specific exemptions for essential goods such as medicines, medical equipment, infant formula, and basic food items like rice, lentils, and chickpeas until March 15, 2025. The regulation introduces temporary facilities for foreign currency financing, imposing a 100% cash collateral coverage and a maximum interest rate of 12% for companies with annual sales under 500 million EGP and debts under $5 million, while prohibiting the use of credit limits for foreign currency procurement. It also enforces strict governance for import operations by mandating the use of documentary credits over collection documents, requiring direct transfers to be processed through the originating bank, and establishing a pre-shipment registration system effective March 2022.