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Monday, 27 June 2016

Court suspends Amer’s limitations of bank MD term limits

Veteran MDs won’t face mandatory retirement, court decides: The Administrative Court overturned Central Bank of Egypt Governor Tarek Amer’s imposition of nine-year term limits on bank managing director. The court, judging on a case filed by two bank shareholders, said Amer’s decision violates the rights of bank executives to employment and also refused the retroactive application of the decision, Al Ahram reported. As it stood, Amer’s decision would have ended the terms of CIB’s Hisham Ezz Al Arab, Arab African International Bank’s Hassan Abdalla, and Bank Audi’s Hatem Sadek, among others, by 31 June.

…In response, Amer said he accepts the court’s decision and will not lodge an appeal, Al Borsa reported, but sources claim the central bank has begun moving to amend the Central Banking Law to allow it to take executive decisions of a “similar” nature. The amendments will give the CBE the remit to implement any executive actions it sees fit for the banking sector, the sources added.

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