Mr. Chairman of the Board of Directors, Bank

Greetings,

Please be informed that in monitoring the extent of compliance by banks registered with the Central Bank of Egypt regarding full disclosure to their customers about the specifications and conditions of retail banking products in all their forms, including personal loans and the method of calculating their return, it has been observed that some banks are advertising in media outlets interest rates that do not reflect the actual annual effective interest rates borne by the borrowing customer. This constitutes a violation of the provisions of Article 40 of the Law establishing the Central Bank of Egypt, the Banking System and Currency, issued by Law No. 88 of 2003, and Article 17 of its Executive Regulation, which fails to reflect the necessary transparency for the customer to know the value of the cost they will bear.

Therefore, please be so kind as to alert to the observance of the provisions of the aforementioned two articles regarding the obligation to fully disclose interest rates and banking service charges in contract texts with customers, and upon renewal of contracts or modification of rates or prices, in bank and branch customer reception halls, in other media, and in private correspondence and leaflets sent to customers.

Specifically, disclosure must be made of the actual annual effective interest rates applied to these products, enabling customers to know their features, main conditions, and costs.

This matter of disclosure will be subject to follow-up by the Central Bank of Egypt.

Accept the highest respect,

Tarek Amer