Circular dated March 31, 2021 regarding extending the period of exempting banks from the application of Clause Two contained in the instructions for concentration ratios in the credit portfolios of the 50 largest clients and related parties issued on January 11, 2016

Mr. Chairman of the Board of Directors Bank of Tahya Misr and after,

Secondly, the decision of the Board of Directors referenced in the circular dated April 16, 2020, which granted banks an exemption from applying Clause Two of the Board of Directors' decision dated January 6, 2016, regarding the concentration ratios of banks' credit portfolios for a period of one year, is extended until April 12, 2021, in light of the precautionary measures taken by the Central Bank to mitigate the impacts of the coronavirus pandemic.

This, and in light of what was presented, and with the aim of supporting banks in performing their role in supporting various economic sectors,

The Board of Directors of the Central Bank of Egypt, in its meeting held on March 28, 2021, decided the following:

"The continuation of the exemption of banks from applying Clause Two of the Central Bank of Egypt Board of Directors' decision dated January 6, 2016 Issued pursuant to the circular dated January 11, 2016, regarding the limits of concentration of banks' credit portfolios with the largest 50 clients and related parties until the end of December 2021"

Please be informed of the need to comply with the aforementioned decision, while noting the continuation of applying the individual and sectoral risk requirements contained in the risk guidelines under Pillar Two of the Basel Accords issued pursuant to the circular dated April 7, 2019. Please accept the highest regards,

Tarek Amer