CBE launches new initiative to guarantee imports through L/Cs

 CARO - 21 February 2022: The Central Bank of Egypt (CBE) issued a new initiative to guarantee import operations through covering risks associated with issuing letters of credit (L/Cs) from banks.

 

As of Feb 22, importers will have to present letters of credit to import goods from abroad. Documentary collection will no longer be accepted by banks to facilitate the import of goods into Egypt.

 

In a letter to banks late on Sunday, the central bank said the initiative targets clients who have history of importing goods through documentary collection from the same bank.

 

The Credit Risk Guarantee Company will guarantee the bank’s portfolio under this initiative by 100% for the part which is not covered by these credits. Banks will be exempted from the guarantee commission for 6 months starting from the date of activating the initiative provided that the company provides the banks with the determinants and framework of working with this initiative.

 

The CBE said the new initiative runs in line with the new regulations issued on Feb 13 to regulate imports through L/Cs