Circular dated May 5, 2020 regarding the implementation of the International Financial Reporting Standard (IFRS9) in light of the Corona crisis

Cairo: May 5, 2020
To: Chairman of the Board of Directors
Bank

Greetings,

I have the honor to refer you to the Egyptian Circular dated February 26, 2019, regarding the preparation of financial statements in accordance with the International Financial Reporting Standard (IFRS 9), and in light of the significant current circumstances and the challenges posed by the Corona virus to the Egyptian banking and financial sectors,

And in light of international practices and the necessity of avoiding any negative impact on the banking sector, the Board of Directors of the Central Bank of Egypt, in its meeting held on May 3, 2020, has decided the following:

1. The Egyptian Circular No. (30) regarding the preparation of annual financial statements - annual - prepared in accordance with the comprehensive standard 2015 (Annual Financial Statements), stipulates that banks prepare their annual financial statements in accordance with IFRS 9 for the fiscal year ending December 31, 2020, and for the fiscal year ending December 31, 2021.

2. The Circular regarding the implementation of the impairment model for financial assets for a period of 6 months issued with the Circular No. dated March 15, 2020, and its periodic circulars, stipulates the application of the IFRS 9 impairment model to financial assets and the recognition of a significant loss indicator in their credit risk management facilities, without waiving the responsibility for assessing the quality of financial assets or the repayment capacity of their customers.

Please find attached the necessary forms to implement this decision.

Please accept my highest regards,
Gamal Naguib