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 The Central Bank of Egypt (CBE) has issued updated directives to the national banking sector regarding the provision of credit facilities. This strategic move aims to tighten regulatory oversight on the utilization of bank financing, ensuring that funds are strictly channeled toward the actual operational and investment activities of corporate clients.

In its latest instructions, the CBE reaffirmed the strict prohibition on granting credit facilities to finance the initial capital of companies under establishment, or to cover the legally mandated 25% capital completion requirement. Furthermore, banks are explicitly barred from providing loans to finance cash dividend distributions for either shareholders or employees.

The Central Bank emphasized that all granted credit must be directly linked to specific, legitimate business purposes in strict compliance with sound banking principles. These comprehensive controls are part of the CBE's broader strategy to enhance the overall quality of credit portfolios and guarantee the optimal use of bank financing to support genuine economic activities.