Regulatory Alerts2017-04-03
Added · Updated
Circular dated April 3, 2017 regarding the mechanism for compensating the return price difference for the tourism, companies, and medium-sized enterprises initiative
The Central Bank of Egypt establishes the compensation mechanism for banks regarding the interest rate differential for the tourism initiative (5 billion EGP at 10% return) and the medium-sized enterprises initiative (10 billion EGP at 12% return). Banks must provide financing from their own resources at the specified rates and calculate monthly compensation based on the difference between the applied rate and the one-night lending rate plus 1%. Compensation is deducted from banks' balances at the Central Bank if they fail to comply with the instructions.
Topics
credit
monetary
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