Circular dated May 14, 2023 regarding the rules of licensing, control and supervision of exchange companies

Cairo on: June 14, 2023

Mr. / Chairman of the Board of Directors

Bank

Greetings,

With reference to the circular letter dated December 14, 2021, regarding the temporary amendment to the treatment of non-performing loans for small and medium-sized enterprises under the instructions for implementing International Financial Reporting Standard No. 9, and in light of the continued repercussions of various crises and their impact on economic sectors, especially the small and medium-sized enterprise sector, and in support of this sector and its commitment to continuing work and production, the Board of Directors of the Central Bank of Egypt, in its meeting held on June 13, 2023, has approved the following:

Extension of Item One of the aforementioned circular letter until the end of June 2024, as follows:

1. Customers are included in Stage 3 in the event of non-compliance with contractual conditions, such as the existence of receivables equal to or exceeding 180 consecutive days (instead of 90 days according to the instructions for implementing Standard No. 9).

2. Customers are upgraded from Stage 3 to Stage 2 in the event of meeting all quantitative and qualitative elements of Stage 2 and settling the accrued/deferred returns (as applicable) and maintaining regular payments for a period of 90 days.

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And please accept our highest regards,

Hassan Abdallah