Export Development Bank allocates risk reserve of $9.9mn for IFRS9

The Export Development Bank of Egypt (EDBE) has allocated a risk reserve of 179 million Egyptian pounds for the IFRS9 accounting standard, said the bank’s vice chairman Ahmed Galal.

The amount allocated represents 1 percent of the risk-weighted credit reserves and will be from the profits of the fiscal year ended in June 2018.

Galal added that the bank started applying the new accounting standard known IFRS9 in financial quarter ended in September 2018, cooperating with Standard & Poor’s.

Banks in Egypt will be required to begin presenting their financial statements in accordance with the IFRS 9 accounting standards starting from FY 2019.

The central bank obligated banks to prepare their financial statements on late December to accomplish them in accordance with the new accounting standards by early July 2019 and by late July 2019 for banks preparing them on late June.

International Financial Reporting Standards (IFRS) is a single set of high-quality global accounting standards that help create a common accounting language so business and accounts can be understood from company to company and country to country.