Circular dated December 12, 2019 regarding the private industrial sector initiative

Cairo on: December 12, 2019

Dear Mr. Chairman

Bank

Greetings,

In continuation of the Central Bank of Egypt's support for the industrial sector as a vital sector that plays an important role in reducing imports and unemployment rates, and thus achieving sustainable development, and in completion of the initiatives issued by the Central Bank of Egypt aimed at increasing local production by providing the necessary financing for private industrial companies, the following initiative has been issued:

1. Availability of an amount of 100 billion pounds through banks at an annual interest rate of 10% (reducing) to be used by them to grant credit facilities to regular companies operating in the private industrial sector whose annual business volume or revenues range from 50 million pounds to 1 billion pounds.

2. The annual business volume or revenues of the client and related parties shall be considered cumulatively.

3. This initiative is directed towards granting credit facilities to finance working capital as well as financing machinery or equipment or production lines (capital financing) to increase production capacity, according to the credit study prepared for each client by the bank.

4. Banks shall be compensated for the interest rate difference periodically every 3 months based on the following:

Credit Interest Rate
+ 2%
- 10%

5. Attention and priority shall be given to companies operating in the field of export, import substitution, or new and renewable energy.

6. The amounts granted under this initiative shall not be used to settle existing credit facilities for the client, and it must be confirmed that they are used for the purpose for which they were granted.

7. In the event that the client granted financing under the initiative defaults, they shall be excluded from it and the interest rate shall be adjusted as the bank sees fit.

8. In the event that the annual business volume or revenues decrease or increase after granting beyond the stipulated limit, the following measures shall be taken:

a. For short-term facilities: Gradual repayment shall be determined according to a time schedule agreed upon with clients, while maintaining the initiative's interest rate until repayment.

b. For medium and long-term facilities: The initiative's interest rate shall be maintained until the end of the facility's term.

Please be kind enough to alert regarding taking the necessary action to implement the aforementioned initiative effective from its date.

Tarek Amer

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