Dubai – The Federation of Egyptian Banks (FEB) announced this Wednesday (16) evening the details of the new import rules approved by the Central Bank of Egypt (CBE) two days ago, scheduled to come into force on March 1. A group of 14 products was excluded from the measure, which determined local banks to only accept letters of credit in import transactions to the country.
In the announcement of the decision, the CBE informed an exception for branches of foreign companies in Egypt, for which invoices would be accepted, not just letters of credit – also known as documentary credits – for goods shipped before the decision came into force.
The FEB revealed the CBE excluded from the decision many food products, such as teas, beef, poultry, fish, wheat, oil, powdered milk, infant formula, beans, lentils, butter, and maize, as well as medicines, solutions, and chemicals. Postal consignments of up to USD 5,000 or the equivalent in other currencies were also excluded from the decision.
According to the FEB, the CBE advised to increase existing credit limits and open for new customers. The FEB qualified the decision as in line with recent measures by the Council of Ministers on the governance of import procedures and to complement the pre-registration system of shipments.
Despite the controversy raised by the decision with the business sector, which addressed the Council of Ministers, the CBE moved forward to implement it. Business organizations believe the change could have severe consequences for the Egyptian economy and affect the import of raw materials and their supply to the local industry, possibly leading to shortages of imported goods and an increase in their prices.
Translated by Ahmed El Nagari & Elúsio Brasileiro
