Regulatory Alerts2023-07-24
Added · Updated
Circular dated July 24, 2023 regarding the cancellation of the low-yield initiative
The document instructs bank board chairs to cease all new financing under the low-yield initiative effective July 5, 2023, following the Cabinet's approval to cancel the program. Banks must stop issuing new facilities under this initiative immediately and await the issuance of new, coordinated regulations from the Financial Regulatory Authority and the Central Bank of Egypt. Compliance with this cancellation decision is mandatory from the date of the Cabinet's resolution.
Cairo: July 24, 2023
To: Mr. Chairman of the Board of Directors
Greetings,
Further to the circular dated November 21, 2022, regarding Decision No. 4151 of 2022 issued by the Minister of Finance, which entrusts the Financial Regulatory Authority with issuing new (future) or amended controls and provisions for existing initiatives after the issuance of the relevant decision.
In this regard, please be informed of the Cabinet's decision in its session held on July 5, 2023, which included approving the cancellation of the low-yield initiative. Accordingly, the initiative is currently under review for issuance, and therefore, it is necessary to stop issuing any new financing under the framework of the aforementioned initiative, noting that a new initiative will be issued in coordination with the Financial Regulatory Authority and the Central Bank of Egypt to support this sector after the issuance and promulgation of the relevant decision.
Kindly be advised to adhere to the provisions of the aforementioned decision effective from its date.
Accept our highest regards,
Hassan Abdallah