Egypt central bank 9-year term limit on bank CEOs ruled void

El-Sayed Gamal El-Din , Sunday 26 Jun 2016

The Central Bank of Egypt (File photo: Reuters)

The Administrative Court ruled that the Central Bank of Egypt's (CBE) March decision to set a 9-year term limit for banks CEOs is void.

The court accepted lawsuits that called for nullifying the decision and ordered the decision be canceled.

The governor Tarek Amer told Reuters that the central bank would not appeal the court decision.

The lawsuits were filed by Monir Yassin, general assembly member of the Commercial International Bank (CIB), and lawyer Ibrahim El-Salamouny as an owner of shares in various private banks.

The CBE decison concerned public and private bank CEOs as well as heads of foreign banks operating in Egypt and was aimed to "inject new blood" and modernise the public sector, it said at the time in a statement.

The lawsuits argued that the CBE governor, with this decision, was controlling what he does not own, referring to private banks.

If implemented, the decision would have forced eight top executives to resign their positions.


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