Circular Letter Dated January 3, 2021 Regarding Extension of Work Period for Two Distressed Client Initiatives

Dear Sir, Chairman of the Board of Directors, greetings,

With reference to the Central Bank's initiative regarding distressed clients who are legal persons with debt balances less than 10 million EGP, issued pursuant to the circular letter dated December 12, 2019, and its subsequent circulars, under which clients were removed from the blacklist, all pending and exchanged cases before courts were waived (upon agreement on repayment terms), and all guarantees related to the debt were released, provided that the client makes cash or in-kind payment (if the bank accepts in-kind payment) of a specific percentage of the debt balance determined according to their cash flows and the bank's study.

And also with reference to the initiative for legal persons operating in the tourism sector who are non-compliant clients with debt balances of 10 million EGP or more, issued pursuant to the circular letter dated January 8, under which clients were also removed from the blacklist, cases pending and exchanged before courts were waived, and guarantees related to the debt were released, provided that the client pays 50% or more of the debt.

In light of the continued repercussions of the COVID-19 crisis and to achieve the objectives of the aforementioned initiatives by benefiting the largest number of distressed clients, the Board of Directors of the Central Bank, in its meeting held on December 27, 2020, has approved the following:

Regarding the initiative for legal persons, whether or not legal proceedings have been taken against them, who are clients with doubtful or bad debts (creditworthiness categories 9 and 10) and whose debt balance was less than 10 million EGP as of the end of September 2019 (excluding accrued interest), as well as the initiative for legal persons operating in the tourism sector who are non-compliant clients whose debt volume is 10 million EGP or more (excluding accrued interest) with a single bank, whether or not legal proceedings have been taken against them, the work period for both initiatives is extended by an additional 6 months, ending on June 30, 2021. Please be so kind as to direct compliance with the aforementioned decision.

Accept, please, the highest regards.