Regulatory Alerts2018-09-09
Added · Updated
Circular dated September 6, 2018 regarding financing controls for installment sales services companies
The Central Bank of Egypt mandates that banks providing financing to installment sales companies must limit such funding to local currency only and adjust the ratio of monthly installments to income from 35% to 40% for personal housing loans. Banks are required to obtain annual and quarterly reports from auditors confirming compliance with these ratios and must include contractual clauses ensuring companies check credit scores via the Egyptian Credit Bureau and report customer behavior. Additionally, banks must submit quarterly statements to the Central Bank detailing total credit facilities granted, used, or under review for these companies.