(MENAFN - Daily News Egypt) The general assembly of the Agricultural Bank of Egypt (ABE), headed by Governor of the Central Bank of Egypt (CBE), Tarek Amer, approved, the articles of association on Sunday.
This is done in order to activate the first article of Law No 84 for 2016 related to the bank, and also in accordance with the law of the CBE and the banking system No 88 for 2003.
According to chairperson of the ABE, El Sayed Elkosayer, the adoption of the basic system of the bank by the general assembly is the last procedure to complete the application of the Law 84 and complete the merger procedures between the banks Upper and Lower Egypt into the main bank under the ABE.
For its part, the general assembly commended the efforts undertaken in the restructuring and development of the ABE. At the same time, it called for exerting more efforts to complete all the steps of the development and structure to make ABE the agricultural and rural development sector apparatus and to have an effective role in achieving financial inclusion and supporting small enterprises.
The parliament passed Law 84 for 2016 in November 2016 converting the Principal Bank for Development and Agricultural Credit (PBDAC) into the ABE.
The law stipulates that the PBDAC converts into a public sector bank called the ABE. It shall take the form of an Egyptian joint stock company wholly owned by the state. Furthermore, it shall have an independent legal entity and its main headquarters is greater Cairo. The equity of PBDAC will be transferred to the ABE, as well as its commitments.
The law also stipulates issuing the articles of association in accordance with the provisions of the CBE Law No 88 for 2003. All regulations in force shall continue until the bank's articles of association are issued.
According to the law, the ABE aims to provide the necessary funding for various types of agricultural and rural development activities, in accordance with the banking system in force, within the framework of the general policy of the state. It also contributes to the provision of financing for the requirements of production, either by importation or local production, in addition to banking operations and all related activities.
The law also provides for the integration of the PBDAC in Lower Egypt and the Credit and Development Bank in Upper Egypt.