Regulatory Alerts2017-03-05
Added · Updated
Circular dated March 5, 2017 amending some items of initiatives for companies and small and medium enterprises
The Central Bank of Egypt amended the unified definition of micro, small, and medium enterprises to include specific thresholds for paid-up capital, workforce size, and annual sales. The circular allows banks to finance micro and small enterprises with sales under 10 million EGP without audited financial statements for up to two years and adjusted risk weighting criteria. For medium enterprises in industry, agriculture, and new/renewable energy, the maximum exposure per client was raised to 40 million EGP, and a 10 billion EGP facility at a 12% interest rate is available, with the central bank compensating banks for the spread above the overnight lending rate.