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Wednesday, 16 October 2019

CBE rolls out new regs for banks lending to microfinance players

The Central Bank of Egypt (CBE) has rolled out four new regulations for banks looking to provide funding for companies and NGOs focused on microfinance, Al Mal reported. Banks will now have to update IScore, in addition to the CBE, on their credit limits on a monthly basis, and ensure that the debtor is not borrowing from more than three different institutions at a time. The banks will not be allowed to include these types of loans in the 20% government-imposed, mandatory quota for SMEs. Finally, banks must obtain confirmation from the Financial Regulatory Authority that the borrower is financially able to take on the loan.

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