Extending the period of exclusion for import operations of some goods whose import operations are excluded from the minimum cash insurance rate until the end of December 2013

Mr. Chairman of the Board of Directors Bank

Greetings,

With reference to Letter No. 306 dated November 6, 2012, which contained "Allowing banks to exempt import operations of all types of meat and poultry, and sugar of all types, for traders for the purpose of trading in them or government entities from the minimum cash insurance rate of 50%, while leaving the freedom to banks to determine the cash coverage ratio without a minimum limit..... ending at the end of June..... 2013" and with reference to Letter No. 95 dated February 4, 2013, which included adding the following goods to the aforementioned goods whose import operations enjoy exemption from the minimum cash insurance rate:

• 1. Medicines, vaccines, and chemical materials
• 2. Infant milk
• 3. Foodstuffs (wheat - oils - grains)
• 4. Animal feeds (corn - soybeans - other supplies)
• 5. Fertilizers and pesticides, while leaving the freedom to banks to determine the cash coverage ratio without a minimum limit, with the necessity of observing credit granting controls.

It is worth noting that in light of the above and due to the proximity of the expiry of the period stipulated at the end of June, 2013, and as a continuation of the role performed by the Central Bank of Egypt in supporting the national economy and providing the needs of the local market through foreign trade operations, it has been decided as follows:

"Extend the period of exemption for import operations of meat and poultry of all types and sugar of all types, in addition to medicines, vaccines, and chemical materials, infant milk, foodstuffs (wheat - oils - grains), animal feeds (corn - soybeans - other supplies), fertilizers, and pesticides, for an additional period of 6 months ending at the end of December 2013 and this while observing credit granting controls, and the results of credit studies conducted by your bank for its clients in this regard.

Please be kind enough to take note and alert regarding full compliance with what is stated in this letter.

Accept our highest respect and appreciation,

Hisham Ramzy Abdel Hafez