2012-05-13

Prohibiting the ownership of shares in non-financial companies whose value exceeds 40% of the company’s issued capital

The letter refers to a decision by the Central Bank of Egypt's board of directors regarding the prohibition of banks owning more than 40% of shares in non-financial companies. The bank gave a three-year grace period for compliance, but some banks are still requesting extensions. The Central Bank of Egypt's board decided in its meeting on September 8, 2009, that if a bank owns more than 40% of a non-financial company's shares, it must measure the impairment losses of these shares according to applicable accounting rules. These losses must be reflected in the income statement, and the book value of the shares must be reduced accordingly.

Egypt

Central Bank of Egypt

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