Circular / Head of the Board of Directors

Bank

In the framework of managing opportunities to provide banking financing for companies and small and medium-sized enterprises, and in the initiatives issued by the Central Bank of Egypt to achieve this goal, specifically those issued on January 11, 2017 and July 16, 2017 regarding granting credit facilities to companies and small and medium-sized enterprises at a low interest rate of 5%, and those issued on February 6, 2017, which included granting medium and long-term financing at a low interest rate of 2% for medium-sized companies and enterprises operating in the fields of industry, agriculture, and new and renewable energy, and finally, the initiative issued on March 5, 2017, which included granting short-term credit facilities at an interest rate of 16% to finance working capital for medium-sized companies and enterprises operating only in the industrial, agricultural manufacturing, and new and renewable energy sectors.

In light of monitoring the practical application of the aforementioned, it was observed that there is a discrepancy in the actual interest rates applied in the context of the aforementioned initiatives, whereby some banks, when granting facilities, sometimes exempt customers from commissions and expenses, while others charge them to the customer.

Accordingly, and to achieve maximum benefit from these initiatives for customers of small and medium-sized companies and enterprises, and to ensure the application of the announced interest rates specifically without any change, it has been decided as follows:

For customers who meet the conditions of the initiatives issued by the Central Bank of Egypt for small and medium-sized companies and enterprises, banks are committed to applying the interest rate determined for each initiative, so that the final price includes all commissions and expenses except:

Commercial mortgage expenses (including advisory expert office expenses, if any). Taxes and stamps in accordance with applicable laws.

And this decision shall take effect from the date of its issuance.

Please be kind enough to note the necessity of taking the required action to implement the aforementioned decision.

And please accept our highest respect,

Gamal Najm