As of February the 22nd of February, importers must present letters of credit to import goods from abroad, according to a new initiative issued by The Central Bank of Egypt (CBE) to guarantee import operations through covering risks associated with issuing letters of credit (L/Cs) from banks. Documentary collection will no longer be accepted by banks to facilitate the import of goods into Egypt.
The initiative runs in line with the new regulations issued on Feb 13 to regulate imports through L/Cs, said the CBE, and in a letter to banks on Sunday the 20th of February, they said that it is aimed at clients with a 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 start of the initiative, if the company provides the banks with the determinants and framework of working with this initiative.
