VOL. XLI

No. 26

29-June-1998

EGYPT

Egypt Issues Investor-Friendly Tax Regulations

Bankers in Egypt have welcomed the Egyptian government's much awaited announcement oftax-code regulations regarding investment of borrowed funds in treasuries. The newregulations allow for banks' shareholder equity to be treated as cost-free funds,rendering the equivalent investment in treasuries tax-free. This may mean that inpractice, many banks are not subject to additional tax liabilities as had been feared...