Regulatory Alerts2016-03-07
Added · Updated
Circular dated December 7, 2015 regarding issuing a definition for companies and micro, small and medium enterprises
The Central Bank of Egypt establishes a unified definition for micro, very small, small, and medium enterprises based on paid-up capital, employee count, and annual sales/revenue thresholds, replacing previous inconsistent bank definitions. The circular amends existing regulations to exempt banks from reserve requirements for loans to these enterprises, updates credit scoring requirements to use the new definition, and modifies credit assessment rules to allow financing for very small and micro enterprises in their first year without audited financial statements. Banks are required to align their internal policies and credit risk management systems with these new definitions and classifications by June 30, 2016.
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