Circular dated January 11, 2021 regarding banks’ distribution of cash dividends in light of the continuing Corona crisis

Cairo: January 11, 2021

Dear Chairman of the Board,

Greetings,

In light of the continued crisis of the spread of the Corona virus (COVID-19) on the Egyptian economy, and considering the severe impact of this crisis on the financial position of banks, and the need to ensure the safety of the monetary and financial system, and the need to strengthen banks' capital bases during the current period, the Board of Directors of the Central Bank of Egypt, in its meeting held on December 27, 2020, has decided the following:

"Banks are not permitted to carry out cash distributions from current profits and/or retained profits eligible for distribution to shareholders, in order to strengthen the capital base of banks to face potential risks resulting from the continued spread of the COVID-19 virus, while allowing the carrying out of distributions to employees as well as the payment of the Board of Management's bonus for the year 2020."

Please accept our highest regards,

Tarek Amer