Regulatory Alerts2019-04-08
Added · Updated
Circular dated April 7, 2019 regarding discounting commercial papers submitted by real estate development companies
The Central Bank of Egypt exempts discounted commercial papers from real estate development companies from the maximum ratio of installments to income, subject to strict conditions including a minimum 50% contract value payment, a maximum 6-year remaining repayment period, and a 10% cash deposit or double the bounced paper ratio. The regulation caps total financing for this purpose at 50 billion EGP, limits bank exposure to 1% of direct loan portfolios (3% aggregate), and requires quarterly reporting of bounced papers and separate credit bureau reporting for individuals. Banks must conduct individual credit inquiries and maintain provisions in accordance with IFRS 9 and previous credit assessment guidelines.
Topics
Share