Circular dated March 6, 2024 regarding reviewing and purifying foreign exchange management requests reports

Dear Sir / Chairman of the Board,

Greetings,

With reference to the Central Bank's letter dated March 7, 2023, regarding the Cabinet's approval to issue an initiative to finance industrial and agricultural private sector companies according to the specifications of the Ministry of Finance at a declining interest rate of 11%, I would like to inform you that the Cabinet approved in its session No. 284 held on April 3, 2024, to amend some of the specifications of the aforementioned initiative effective from April 4, 2024, as follows:

1. The interest rate borne by the client shall be 15% declining instead of 11% declining, and the applicable interest rate shall be reviewed within three months at most or upon adjustment of the credit and discount rate.

2. Increase the maximum limit for financing a single client to reach 100 million EGP instead of 75 million EGP, and 112.5 million EGP for a client with related parties, in order to make available to the client and his related parties an amount of 150 million EGP from the larger amounts for a single client and his parties, maximizing the benefit from the initiative.

3. These amendments shall apply to any new loans and any new withdrawals for working capital financing (i.e., the application of the 11% declining rate shall continue on the utilized portion and what will be utilized within the previously contracted limits for current loans directed to finance machines and equipment, as well as the utilized balance in financing working capital on the date of this decision until their maturity), taking into account the existence of actual contracts for medium-term loans and utilized amounts under credit facilities for working capital financing.

Please be so kind as to alert regarding taking the necessary action in this regard.

Accept my highest respect, Tarek El-Khouly