Regulatory Alerts2012-05-10
Added · Updated
Central Bank of Egypt Decision No. 2408/2008 on Encouraging Banks to Finance Small and Medium-Sized Enterprises
Decision No. 2408/2008 of the Central Bank of Egypt exempts banks from the 14% reserve requirement for credit granted to small and medium-sized enterprises (SMEs) starting January 1, 2009. SMEs are defined as entities with annual sales between 1 million and 20 million Egyptian pounds and paid-up capital between 250,000 and 5 million Egyptian pounds. The decision mandates the Supervision and Inspection Department to issue detailed implementation rules, establishes a specialized unit at the Egyptian Banking Institute to support banks, and requires coordination with relevant authorities to develop infrastructure, credit reporting, and legislative frameworks to facilitate SME financing. The decision enters into force on January 1, 2009.