Regulatory Alerts2020-06-27
Added · Updated
Circular dated June 25, 2020 regarding the initiative to guarantee facilities for major companies operating in the industrial, agricultural and contracting sectors through the Credit Risk Guarantee Company
The Central Bank of Egypt expands the Credit Risk Guarantee Company's mandate to cover major companies with annual turnover or revenues of 200 million Egyptian pounds or more under a new 7 billion Egyptian pound guarantee facility. Banks are required to apply a 0% risk weight to covered portfolios, exclude guaranteed portions from provisioning calculations, and use the guarantees exclusively for new facilities or increases to existing ones, not for debt repayment. Banks must also submit monthly data on covered companies and periodic declarations of their portfolios to the Central Bank's supervision and oversight department.