Circular dated March 19, 2020 regarding amending the special interest rate for a number of Central Bank initiatives

Cairo: March 19, 2020

To: Mr. Chairman of the Board of Directors, Bank

Greetings,

With reference to the initiatives issued by the Central Bank of Egypt targeting financing for the Industrial Private Sector issued on December 12, 2019, and Middle-Income Housing Finance issued on December 19, 2019, and supporting the replacement and renewal of guesthouses, houseboats, and tourist transport fleets issued on January 8, 2020, and in light of the Monetary Policy Committee decisions issued on March 17, 2020, the Board of Directors of the Central Bank has decided the following:

1. Amendment of the special interest rate for the following initiatives to become 8% (calculated on a diminishing basis) instead of 10%: a. Industrial Private Sector Initiative. b. Middle-Income Housing Finance Initiative. c. Initiative Supporting the Replacement and Renewal of Guesthouses, Houseboats, and Tourist Transport Fleets.

2. Banks shall be compensated for the interest rate differential with the same periodicity of compensation stated in those initiatives, according to the following mechanism:

   Credit and Discount Rate + 2% - 8%

3. Reaffirmation that the remaining conditions of the initiatives remain unchanged.

4. Amendment of the interest rate applied to customers who previously benefited from the initiatives listed in item (1) to the new interest rate of 8%, effective from its date.

Effective from the date of the decision, please be so kind as to alert regarding taking the necessary action to implement the aforementioned decision from its date, and accept our highest regards,

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