The headquarters of Egypt's Central Bank is seen in downtown Cairo (Reuters)
The Federation of Egyptian Banks has launched a new initiative in coordination with the Central Bank of Egypt (CBE) to support people affected by the coronavirus, the Federation said on Wednesday.
According to the initiative, member banks of the federation active in the Egyptian local market will be divided into four categories according to their annual profit in the past year.
The first category of banks with equal to or more than EGP 5 billion in annual profit are to donate EGP 80 million, while banks with an annual profit between EGP 3 to 5 billion are set to donate EGP 40 million.
The third category of banks whose annual profits range between EGP 1 to 3 billion will donate EGP 20 million, according to the initiative.
The fourth and last category is for banks with an annual profit below EGP 1 billion, which are set to donate EGP 10 million.
The federation said that the amount of these donations will be divided into three consecutive months (April, May, and June).
“Regarding employees’ contributions, each employee is free to donate the appropriate amount according to his choice and in light of the policy of each bank,” the federation said.
The Federation of Egyptian Banks said that the CBE agreed on opening an account for the initiative in Banque Misr.
Chairman of the federation Mohamed Al-Etribi affirmed that collective action, integration and coordination of the banking sector's contributions will have a great impact on mobilising resources and enhancing the ability to support the country in overcoming the current crisis.
El-Etribi explained that the initiative comes in light of the current conditions facing the country and their implications for the Egyptian economy, as well as the total or partial shutdown of many sectors.
He stated that coordination on the initiative is with both the CBE and the technical secretariat of the national committee headed by the Minister of Planning, who is charged with coordinating and integrating efforts and initiatives of financial institutions, companies, businessmen, and private labor institutions to support the sectors most affected by the implications of coronavirus.
The Federation of Egyptian Banks was established as a non-profit independent entity connecting all Egyptian banks and foreign banks working in Egypt and complying with the law regarding the CBE, banking and monetary laws.
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