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The Central Bank of Egypt headed by Tarek Amer issued a number of decisions to preserve the integrity of the monetary and banking system, due to the lack of clarity regarding when the crisis of the spread of the Covid 19 virus is expected to end at the local and international levels.
In a letter addressed to the heads of boards of directors of banks operating in the local market, the bank said that it had decided not to allow banks to make cash distributions from the year’s profits or retained profits that could be distributed to shareholders, in support of the banks’ capital base to face the potential risks as a result of the continuing crisis of the Coronavirus outbreak.
The central bank allowed banks to make dividends to employees, as well as disbursing the board of directors ’remuneration for the past fiscal year 2020.
The bank emphasized that these decisions come within the framework of precaution for any repercussions that may occur during the coming period due to the repercussions of the Corona virus crisis.
– Not allowing banks to make cash dividends out of annual or withheld, distributable profits.
Allowing banks to make dividends to employees and to pay the board of directors ’remuneration for the“ fiscal year 2020 ”.
The aim of the decision is to strengthen the capital base of banks to face the potential risks resulting from the continuing spread of Covid-19
In details, the Central Bank of Egypt decided not to allow banks to make cash dividends from annual or withheld profits that are distributable to shareholders.
A document reviewed by Reuters issued by the Central Bank and directed to banks operating in Egypt on January 11, 2020, revealed that the decision of the Central Bank’s Board of Directors comes “in support of the banks’ capital base to face potential risks as a result of the continuing crisis of the spread of the Covid-19 virus.”
And work in Egypt about 37 banks.
The document added that the Central Bank of Egypt allowed banks to make dividends to employees and paid the board of directors ’remuneration for the“ fiscal year 2020 ”.
The situation in Egypt