Egypt’s Central Bank Issues New Rules for Credit Guarantee Companies
The Central Bank of Egypt has issued new licensing, regulatory and supervisory rules for credit guarantee companies, following approval by its board on September 23, 2026, to establish a regulatory framework supporting their financial soundness and stability.
One-Year Compliance Period
The Central Bank granted the Credit Risk Guarantee Company one year to comply with the new rules. The compliance period will extend to two years for information security, cybersecurity and prudential requirements.
The company must submit a detailed implementation timetable to the Central Bank’s Supervision Sector within three months of the rules’ issuance, allowing the regulator to monitor compliance with the approved schedule.
Legal Framework for Credit Guarantees
The rules were prepared under Central Bank and Banking System Law No. 194 of 2020, which places credit guarantee companies among licensed entities subject to the Central Bank’s supervision. The framework is intended to support sound management of these companies and safeguard their financial position.
The Central Bank defines a credit guarantee company as an entity that supports individuals and micro, small and medium-sized enterprises by covering part of the risks associated with their financing. It provides guarantees to banks and licensed credit providers and commits to paying a percentage of a credit facility if the borrower defaults, subject to contractual terms.
Key Regulatory Definitions
The rules define related parties as individuals or entities connected by an agreement aimed at acquiring or exercising effective control over a company. The definition includes individuals and their relatives up to the second degree, as well as legal entities under their effective control.
Outsourcing services are defined as activities assigned by a company to a third party to perform tasks on its behalf. Key officials include board chairpersons and members, the chief executive officer, and those responsible for the company’s main and control functions.
A major shareholder is defined as a shareholder owning more than 10% of the company’s issued capital or voting rights, or exercising effective control either independently or through related parties.
The rules apply to credit guarantee companies operating in Egypt that meet the specified definition. Companies with different business models must approach the Central Bank to determine the scope of their activities and obtain the required license and any applicable regulatory requirements.