Circular dated October 13, 2019 regarding amending customers’ bank investments accounts

Dear Sir,

With reference to the Circular dated September 23, 1996, which defined the Bank's investments with a single customer, and subsequent circulars on the same subject, and to the instructions regarding the maximum limits for investments with a single customer and connected parties issued on February 7, 2006, and amended by the Circular dated January 11, 2016. In the context of the Central Bank of Egypt's commitment to keeping pace with and implementing international best practices to ensure the safety of the banking sector, the Board of Directors of the Central Bank of Egypt, in its meeting held on October 9, 2019, decided to update certain concepts contained in the aforementioned instructions, as follows:

1. Application of all current instructions regarding the maximum limits for the Bank's investments with a single customer and connected parties on a consolidated basis, including the Bank's investments and all its affiliated financial companies, except insurance companies.

2. Expanding the definition of investment contained in the decision of the Board of Directors of the Central Bank of Egypt dated August 22, 1996, and subsequent circulars, to include the following:

   • The total value of capital commitments.
   • 50% of the value of the unused portion of commitments for loans and facilities that are non-cancellable with an original maturity period exceeding one year.
   • 20% of the value of the unused portion of commitments for loans and facilities that are non-cancellable with an original maturity period of one year or less.

3. Banks are granted a period of 6 months to align their positions.

Tarek Amer

The maturity period for the commitment will be calculated from the date of entering into the transaction, based on the original maturity date, and until the final date of full drawdown of the loan.