Circular dated November 21, 2022 regarding the Cabinet’s decision related to the Central Bank’s low-yield initiatives

Cairo on: December 15, 2022
To the Esteemed Chairman of the Board of Directors Bank

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With reference to the circular letter dated February 22, 2021, pursuant to which banks were required to increase their portfolio of direct and indirect credit facilities for micro, small, and medium-sized enterprises from 20% to 25% of the bank's credit facility portfolio as of December 2020, with a commitment to direct 10% of it to finance small enterprises and establishments, and that banks must achieve those ratios by December 31, 2022, subject to certain conditions mentioned above. Furthermore, in light of the continuous monitoring of banks' performance regarding the achievement of target ratios, and with the aim of providing further support to micro, small, and medium-sized enterprises and encouraging banks to continue financing them due to their importance in enhancing economic growth, the Board of Directors of the Central Bank of Egypt, in its session held on December 13, 2022, approved the following:

1. Extending the validity of Clause (a) of the instructions issued pursuant to the circular letter dated February 22, 2021, regarding the obligation of banks to achieve a 25% ratio of the bank's credit facility portfolio to finance micro, small, and medium-sized enterprises, and directing 10% of it to finance small enterprises and establishments, for an additional year ending on December 31, 2023 (instead of December 31, 2022).

Please be kind enough to alert regarding the compliance with the above, while emphasizing the continued validity of the remaining clauses of the instructions insofar as no provision has been made regarding them.

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And please accept our highest respect
Hassan Abdallah