Circular dated April 16, 2020 exempting banks for one year from complying with Clause Two of the January 11, 2016 instructions on concentrating credit portfolios for the largest 50 clients

Cairo on April 16, 2020
To: The Chairman of the Board of Directors
Bank

Greetings,

With reference to Circular No. dated January 11, 2016 regarding the concentration ratios of banks' credit portfolios, and Circular No. dated April 7, 2019 regarding risk management, and in light of the challenges posed by the coronavirus pandemic and its impact on the financial and economic activities of Egyptian banks, and in light of the Central Bank's desire to provide financial support to banks to meet the needs of the largest 50 clients and their related parties, the Board of Directors of the Central Bank of Egypt, in its meeting held on April 12, 2020, has decided the following:

Exempting banks for one year from the date of issuance of the decision of the Board of Directors of the Central Bank of Egypt dated January 6, 2016, issued pursuant to Circular No. dated January 11, 2016 regarding the limits of concentration of banks' credit portfolios among the largest 50 clients and their related parties.

We kindly request your attention to this decision, which takes effect from its date, which does not affect the nature of the individual and sectoral risk ratios contained in the risk management instructions within the framework of the second pillar of the Basel decisions issued pursuant to Circular No. dated April 7, 2019.

Yours sincerely,

Tarek Amer