Procedures For Credits - ALL PDF

SUBJECT : RULES FOR APPROVAL & FOLLOW UP OF CREDIT FILES
ON : February 1, 2005
FROM : YVES RIOU – NSGB/RIS
TO : Fathy AWAD , Seif MEKLAD – Regional Managers

TAREK FAYED - CBG
Michel SEVIN ALLOUET- MRU
ALL BRANCH MANAGERS
ALL STAFF of RISK DEPARTMENT
COPY : Guy POUPET, Mohamed EL DIB, Joel BAY

Hassan SALEH, Samy HASSAN
Bassem NOUR, Magdy ABDEL GAWAD
You will find attached a memo describing the rules for approval and follow up of
credit files at NSGB, duly approved by the Board of Directors on December 10, 2004 .
This memo and all the mentioned appendix will be available on Intranet OM Site
(OM/Risk Resources/Procedures).
You are kindly requested to inform all your credit officers.
Thank you,
Best regards.
RULES FOR APPROVAL AND FOLLOW UP OF CREDIT FILES
1
1- ROLE OF THE ACTORS
1.1- Objectives
1.2- Role of commercial units
1.3- Role of Risk Division
1.4- Role of decision makers
1.5- Role of Credit Administration Unit
1.6- Role of control units
2- PROCEDURES
2.1 Objectives
2.2 Credit Authorities
2.3 Clients
2.4 Rating
2.5 Creation and renewal of credit files
2.6 Authorizations
2.7 Follow up and risk Control
2.8 Watch Names Procedure
2.9 Provisioning policy
2.10 Recovery procedure
2
1. ROLE OF THE ACTORS
3
1.1 -Objectives
1- The present chapter gives a description of the role of the various actors in the
process of approval and follow up of credit file at NSGB.
2- The rules for approval and follow up of a credit file at NSGB, described in the
present circular, have been defined in accordance with the general principles of
NSGB Risk Policy. The present procedure is applicable to all of NSGB’s
commercial units and all types of customers.
3- For the sake of efficiency, it is important that all the actors inform each other
about the transactions which they initiated. This principle should always be applied
for complex and large amount transactions as well as for new businesses or
products. It is advisable to associate the Risk Division in the process of study and
approval at an early stage so as to shorten the process of the study and the approval
of a credit application. Moreover, the Risk Division will ensure that the risk
attached to these transactions are acceptable and in compliance with the risk policy
and that the risk attached to new activities or products are duly understood,
measured, approved and submitted to appropriate procedures and controls.
1.2- Role of the commercial units

1.2.1 Credit applications
General rules
1- For any transaction generating a risk not covered by an existing authorization, a
credit application must be prepared either by the Branch (BRA) or by the Corporate
Relationship Unit (CRU) or the Multinationals Relationship Unit (MRU) and
transmitted to the Risk Division ( RIS) for assessment.
2- Any credit application has to be prepared within the commercial and risk
policies defined by the bank’s top management in coherence with the Central Bank
of Egypt (CBE) regulations.
3- Any credit application must contain a complete and clear analysis of the risk
related to the obligor and eventually the transaction and a brief recommendation
duly supported. This is in addition to the applicable risk tools.
4- In case of renewal of the credit facilities of a group ( refer to the Risk Policy or
the Credit Authorities circulars for definition) all the credit applications for the
companies and individuals linked to this group must be submitted at the same time.
In case of a special transaction, a statement showing the limits and outstanding of
the group must be attached.
5. The commercial credit officer must make sure that the credit facility shall be for
a specific purpose and will be used only for that purpose.
4
Preparation of credit applications
For a good efficiency, a credit application must be prepared by one commercial
entity only.
1- Standard credit applications are prepared by the Branches ( BRA )
2- Credits applications related to corporates followed by CRU or related to
complex financings (project finance, Syndicated facilities etc…) are prepared either
directly by CRU or by the Branches under the supervision of the CRU. In any case
the opinion of CRU is required.
3- Credit applications related to multinational/foreign companies are usually
prepared by the branches under the supervision of MRU which gives its opinion. In
some cases, in particular for complex ones, the credit applications can be prepared
directly by MRU.
1.3- Role of the Risk Assessment Unit of the
Risk Division
General rules and definitions
The Risk Assessment Unit of the Risk Division is viewed as a service provider to
commercial and operating units. It is considered that a joint judgment among risk
and business staff ensures the best balance and discernment possible in the credit
decisions of NSGB.
The mission of the Risk Assessment Unit, in the process of approving credit files,
is :
1 to assess all types of risk (related to the obligor and the
facilities/transactions).
2 to control if the proposed transactions are in accordance with the
credit policy defined by the Top Management of the bank in
coherence with CBE regulations.
3 to recommend amendments in the structure and securities or supports
whenever appropriate to be within the risk policy of the Bank.
4 give its opinion on the risk of a credit file by writing a
recommendation duly supported and clearly expressed.
The Risk Assessment Unit is competent to review and give its opinion on all the
credits applications, whatever their nature (traditional facility, structured finance,
market transaction….) related to clients or groups of clients which are not within
the limits of the Branch Credit Committees , the Regional Credit Committees and
the limits for individuals as they are defined in the Credit Authorities of the Bank.
Moreover, being part of the Risk Division, this unit will provide support to the
commercial units in the implementation of some of the risk tools developed
internally or by Societe Generale.
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As per the article 19 of the Executive regulations of the Banking Law no 88-2003,
the Risk Assessment Unit shall do the following :
1 Making sure that the credit applications include all the information
required by the law such as names of the owners/shareholders of the
company, the percentage of stockholding, the degree of relationship and
the balances of credit facilities granted to the client by other banks. The
credit applications shall not be accepted before fulfilling all the required
information and confirming its validity and correctness ( art 62 of the
Law).
2 Ascertain the creditworthiness of the customer, the efficiency of
managing its activity and the validity of the information and data
provided, according to the credit evaluation rules and procedures defined
in the risk policy approved by the Board of Directors in January 2001 and
the procedures defined in chapter 2 of the present document according to
the provision of article 63 of the Law
3 Verify that the debts of parties connected/related to the customer are
included in the debt balances referred to in article 62 of the law
4 Investigate about the customer from trustworthy sources according to the
forms approved by the Board of Directors and verify that the
investigation is renewed at least every six months
5 Ascertain the good reputation of the customer and the availability of
adequate self resources compared to the volume of finance or credit
facility extended to him by the Bank or by other banks, as well as the
adequacy of the cash flows expected from his activities, which are
required for fulfilling his obligations
6 Review the compiled statement on the customer and the parties connected
thereto as provided by the compiled database in the Central Bank before
taking the decision of extending or amending the credit facility,
(renewing, increasing or decreasing its amount or modifying its conditions).
7 Check that the ratio of finance provided by local and foreign banks shall
not prejudice the customer’s ability to repay the credit facilities obtained
8 Make sure that the credit facility is for a specific purpose
9 Verify that the customer has a source of repayment in foreign currencies
in the case of granting facilities in foreign currencies
10 Verify the non concentration of credit facilities extended by the bank on a
limited number of customers activities or sectors;
11 Verify if the limits defined by the Credit Authorities of the bank are
properly abided by.
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1.4 – Role of the decision makers
The credit authorization system is defined in the shareholders agreement and the
Credit authorities are approved by the Board of Directors in compliance with article
No 63 of the New Banking Law no 88-2003. Credit authorities are granted to
different committees and to NSGB officers for credits to individuals. Details on the
way these authorities are operated is shown in a separate circular regularly updated
to adapt the rules and limits to the organization of the Bank. Except for the credits
falling within the limits of the Branch Credit Committees, the Regional Credit
Committees and the limits for credit to individuals (who are not part of group
clients -as defined in the credit authorities of the bank and in the following
paragraph 2.3-) no credit can be approved without the prior opinion of the Risk
Assessment Unit.
1.5 Role of the Credit Administration Unit
The Credit Administration Unit (CAU) is part of the Banking Services

Department (BSD).
The role of this unit is, in particular, to guarantee the following:
1 disbursement of credits with adequate securities, supports and
documentation that are in compliance with the credit approval
2 follow-up of the regularity of the securities, supports and
documentation.
3 availability of sufficient/proper documentation when a credit turns to
be on a watch list , sensitive or non performing.
The responsibilities of the Credit Administration Unit are as follows:
1 receiving the credit notifications from Risk Division/Risk Assessment
Unit, including all the approved terms and conditions
2 receiving the copies of the required documentation from the branch
3 perfecting the securities by assuring that the documentation is in
compliance, in form, with the terms, conditions and securities of the
credit approval
4 keeping the copies of the credit documentation
5 feeding the IT system with the required data (credit limits, interest
rate, risk rating and discretionary level code, ..etc.)
6 keeping a proper diary with maturity/expiry dates
7 giving a proper prior written notice to the concerned branch with the
maturity/expiry of any of the maintained documents
8 notifying the concerned branch that the securities are perfected and
that the credit is ready for disbursement
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9 notifying the branch with any imperfection (discrepancies and/or
missing documents) preventing the disbursement of the credit facilities
10 making sure that the requests for exceptions, waivers or amendment to
any of the credit approval terms, conditions or securities are presented
by the branch to Risk Assessment Unit for approval by the competent
authority
11 coordinating with the specialists for opinions, as the case may require ,
including Risk Assessment, Legal Department, etc.
12 regarding the term loans, the Credit Administration Unit is responsible
to check if the repayment schedule is properly fed into the computer in
compliance with the credit approval and to follow up any changes
intervening in the structure/repayment schedule subject to prior
approval from the competent Credit authorities.
1.6 Role of the control units
1.6.1 Credit Control Unit

The Credit Control Unit is part of Risk Division. The role of this Unit is the
following :
1 To verify that the decisions of the internal credit authorities have been
properly implemented
2 To detect and report, the unauthorized excesses over credit limits to
the Head of Risk Division and follow up the regularization
3 To periodically list the expired credit files and report to the Head of
Risk Division for dispatching to the branches and to follow up the
credit renewals
4 Follow the accounts under settlement/phasing out
5 Follow the past dues under post-finance credit facilities and term
loans.
6 Follow closely the accounts on watch list or classified as sensitive
Moreover, being part of the Risk Division, this unit will provide support to
the commercial units in the implementation of some of the risk tools
developed internally or by Societe Generale.
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1.6.2 – Inspection/Internal audit
During their regular missions for inspecting the branches, (the Inspection
Department will also verify the credit files). Its role is the following :
1 Provide a photography of the branch’s credit portfolio at the date of
the inspection (classification by level of authority, status of regularity,
past dues etc.).
2 Check if the existing documentation for each credit files is in
compliance with the credit terms approved and verify that the original
documents are properly kept in a fire proof cabinet.
3 Check if the terms and conditions of the credit approvals are satisfied
4 Check if the required documents of a credit file ( financials,
investigation reports, CBE-CAP, visit reports etc. ) are regularly
updated in accordance with the banking law & internal rules.
5 Check if the procedures defined in the risk policy of the bank are
properly followed.
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2 PROCEDURES
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2.1 Objectives
The purpose of this chapter is to give clear definitions and to establish detailed
procedures regarding the process of approving credit files in order to comply with
the following aims :
1 define clearly the roles and responsibilities of the different levels
involved in each step of the process (credit application, evaluation,
decision)
2 perform an objective & coherent evaluation of the risk associated to
any new operation as well as the existing credit facilities
3 contribute to ensure an optimized profitability of transactions in
respect to the associated risk
4 keep efficient administrative process and controls
5 develop reliable, exhaustive and consolidated information systems
6 simplify and standardize the procedures and process of approval of
credit files at NSGB
7 improve the productivity at NSGB and accelerate the circulation of the
information within SG Group.
2.2 Credit Authorities
No credit facility -whatever its size or nature- can be approved by a person not
having the proper authority for it. The credit authorities are approved by the Board
of Directors. The latest version approved by the Board of Directors is attached in
Appendix 1.
2.3 Clients
Objectives
1.- One essential condition to comply with the Basel Committee recommendations
on credit risk management lies with adequate and reliable risk information systems.
2- A central SG Group client database is one of the most important constituents for
an information system to provide an accurate view of our risk portfolio. Its quality
mainly depends on our watchfulness and our ability to constantly perform a proper
and complete identification, knowledge and registration of all our clients and
counterparties.
3.- The objective of this chapter is to remind the general rules and procedures
applicable in this matter.
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Definitions
The word “client” is applied to all third parties we deal with :
• Borrower, depositor, beneficiary of operational banking services or
advice ..etc.
• Counterparty in a market transaction, issuer of bonds, securities holder
etc.
• Third party, guarantor, sponsor etc.
Client knowledge
Respectability
1 Every client relationship manager ( Branch, Regional Management, CRU ,
MRU ) should protect NSGB and SG image and reputation by developing
business only with clients or third parties clearly identified and who share
our values of integrity and responsibility.
2 In this respect, before establishing any contractual relationship (account
opening, deposit or credit extension etc.) with any type of client, it is
required that each marketing-person checks the identity, reputation and
morality of this client. From the inception of a client relationship and
beyond, he is accountable for the knowledge of his client in terms of
business and reputation as well as management, ethical conduct and
professionalism. Such knowledge obviously relies on the legal documents
provided by the client as well as the consultation of external specialized data,
but, with a few exceptions, such as banks and strongly regulated
counterparties, the own appreciation of the front office agent, based on his
professional experience and his clients contacts, remains the key factor.
3 In addition, it is the responsibility of all commercial entities to immediately
transmit any new information they get that could modify the bank’s opinion
on one of its clients.
Existence and legal capacity
1 A good client knowledge and correct registration should be supported,
notably for a corporate client, by official documents (by-laws, statutes etc.)
certifying the client’s existence, legal ability to deal and powers of attorney
enabling its representatives to enter into transactions with the bank. As long
as no central organization has been established, each branch must set up its
own client legal file and keep these documents in order to be able to respond
to local regulator requests.
2 Besides, knowing well a client in terms of business, financial situation,
industrial prospects, financial needs, etc. is essential to better service him and
propose transactions which are suitable to his objectives and his economic
and legal environment.
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Segmentation
Clients are broken down in seven categories as follows :
1 Private individuals
2 Professionals
3 Associations
4 Private or publicly-held corporations
5 Financial Institutions and financial intermediaries
6 Sovereign and Supranational entities (Governments, administrations,
central banks, governorates, cities..)
7 SG Group
The procedure of segmentation is described in appendix 2, attached
Registration
1 Before establishing any contractual relationship with any new client,

counterparty or third party, all SG Group entities, including NSGB, are
responsible for its registration in the local entity’s client referential and
above all, if & when it is a corporate client, in the central SG Group Client
file (FICLI). The registration will assign to each client a Primary Client
Responsibility Unit (PCRU). One of the main responsibilities of the PCRU
is to effectively manage the consolidated SG Group exposure with each of
its clients.
2 NSGB Branches are responsible not only to register their clients in local
&/or SG FICLI , but also to permanently assure the validity of all data
related to their registered client making all necessary corrections in case of
error or change.
3 It is very important to remind that the quality of the registration of all these
elements is critical in terms of risk management and notably the capture of
the appropriate “ client-group” and PCRU. Given the SG Group size and
business diversity, a sound credit risk management is essentially based on
the ability to :
• Consolidate in a central referential data base all credit authorizations

extended by all SG entities to a given client or a client-group
• Assign the risk monitoring and the risk management functions to a
single entity that possess appropriate risk and sectorial skills.
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Client-Group and Clients sub-Groups:
1 The “ client-group” concept applies each time we are in relationship with

several entities of the same commercial, industrial financial, administrative
or organization (company or individual), with such links that financial
difficulties encountered by any of them would necessarily entail serious
difficulties in the others. Business relationship, risk analysis and credit
authority rules relies on this client-group definition.
2 A “ client-group” is defined as all the entities with shareholding links, with
the parent company holding either the majority of the capital or voting rights
or holding a blocking minority and management responsibilities with no
other shareholder holding more than its share. All the shareholding links
between the parent company and the other group entities must be registered
in the FICLI data base as “group”.
3 Beyond this strictly legal definition, the concept of “client-group” may be
extended to companies (and more exceptionally to individuals) with such
links among them or with a client–group that PCRU would judge it
necessary to take them into account to achieve a pertinent overall risk
analysis. This is the case for:
• Entities benefiting, in fact, from a common management
• Local authorities or state entities financially depending on each other
• Companies tied by joint or cross guarantees or by preponderant
business relations ( such as mutual or cooperative networks, sub-
contracting networks, franchise networks etc.)
Once registered in the FICLI each client is allocated a DAI number and a group
number if it is linked to a group.
The procedure to register a client in the FICLI is described in a manual ( see
appendix 3 attached ).
2.4 Rating
The current customer rating system is based on the following principles:

1. BHFM rating
The rating depends on the quality of the counterparty and is assigned to all lines
of credit. The rating is defined on a scale of 1 to 8 B as per the following rating
grid.
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RATING CRITERIA ACTIONS
1 A leading company on its market, A buoyant
very good sector. Steady growth. Excellent profitability.
Financial soundness.
Very high quality ownership structure and
management. Compliance with central bank
ratios.
2 Sound financial structure and correct
good profitability but no rating 1 for one of the
following reasons :
balance sheet to be improved in a given area
business sector in doubt
managers’ age
3 Healthy financial structure but smaller size. to be preferred but discuss
rather Good reimbursement capacity but some of the problems upstream with the
good weaknesses noted under 2. client
4 Good financial structure but strain liquidity. To be preserved subject to a
acceptable Special attention required even if there is no close follow up of the
reason to break the relationship. customer’s situation.
Modest size.
5 Several cases: To be preserved but
Sensitive A risky business of a relatively week financial determine whether to
but structure or small size continue the relation or not.
acceptable Startup . Strengthen securities
declining decline in credit movement
Investment badly settled
6A Credit risk not acceptable. Terminate without need for
sensitive Customer in difficult situation .Financial a provision
structure unbalanced.
Significant decline in credit movement
Doubt about probity of management
Loan termination remains a possibility
6B The same as 6A, but loan termination seems Terminate , provision at
more problematic. least interests
Although not certain, loss is possible.
7 Almost certain partial loss but preservation of
Reduce commitments
business relations. gradually.
Provision
8A Debts to recover by legal action or amicable Monitor progress of legal
settlement. action
8B Debts definitely compromised None, but take a 100%
provision
15
This rating system is essential to the efficiency of the various reporting and
management tools. It is mainly based on an analysis of the quality of the
counterparty and it cannot be changed for a given line of credit according to its
characteristics. However, this type of change must only be exceptional and
based on unquestionable elements.
The following management rules are applicable to the rating:
• All credits must be rated. A statistical approach may be used for small-
scale credit files and loans to private customers.
• It must be revised at the time of the annual renewal of credit
authorisations. It may be revised in the course of the year should an
exceptional event occur.
• It must be validated, by the Risk Division & the competent local Credit
Committee for clients enjoying credit facilities within the local Credit
Committees discretionary limits. For clients exceeding the local
discretionary limits, the ratings will be validated by the Executive
Committee (competent unit in Societe Generale).
2. RAROC rating by the STARWEB tool

Since 1997, SG Group has been using the RAROC procedure both in investment
and financing and in its retail banking business. This system measures risk-
adjusted return and meets two aims:
1 Firstly to provide the SG Group with reliable objective risk and performance
control instruments that also serves as a common risk language among the
whole group.
2 Secondly to comply with regulatory restrictions imposed by the reform of the
Cooke ratio, as the Basel Committee is strongly encouraging banks to use
internal rating tools to assess their risk.
The acronym RAROC stands for “ Risk Adjusted Return On Capital” which
clearly explains the function of the ratio that can be applied to a customer
relationship, a credit transaction or a portfolio of commitments.
Among other things, the project includes rating customers (obligors) and lines
of credit. A mean loss is associated to each rating. With Starweb, several
performance indicators can also be reproduced on the basis of economic capital
which corresponds to the ratio between the capital required and the level of risk
of each transaction.
The Starweb tool is being used by NSGB since beginning of year 2003 (For
more details refer to appendix 4 attached )
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The following management rules are applicable to the ratings:
Starweb is based on a quantitative analysis, and customers & transactions can be

rated on the same scale.
• The scope covers businesses in all sectors except for financial sectors for
which a special model is used.
• The application only applies to rating customers whose assets exceed
USD 2 millions.
• The rating depends on the quality of the counterparty/obligor (through
answers to questionnaires), and allows each of the lines of the credit file
concerned to be rated according to the obligor rating and the structure of
the transactions,
• The customer rating is revised at least once a year, when financial
statements are released, or during the year, should an exceptional event
occur that changes the risk profile (it is an essential element in risk
control and must therefore be done independently from the credit file
“event”),
• This rating is proposed by the commercial units and must be validated by
the Risk Division. It is approved by SOCIETE GENERALE
(BHFM/RGE/RIS or the monitoring sector in charge of the customer) for
files exceeding NSGB local lending limits.
• In the future, all the markets will be covered by the RAROC method
which will be introduced gradually using suitable assessment methods.
2.5 - Creation and renewal of credit files
2.5.1- Initiation
Any transaction generating a credit risk ( loan, commitment, market,
guarantee given, guarantee received, securities or cash settlement etc.) on an NSGB
client, counterparty or non-client third party (i.e. guarantor) parent or subsidiary
corresponding to:
1 a new credit extension not covered by an existing authorisation on the
concerned client, the concerned type of risk or concerned exposure
2 an increased amount or a maturity extension of an existing authorisation
3 a change in the risk content (terms and conditions) described and approved in
an existing authorisation
must be documented with a credit application prepared by the operational unit in
charge of the client, assessed by Risk Division/Risk Assessment Unit and
decided upon by the competent authority even if the global authorised exposure
on this client remains unchanged.
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2.5.2 Contents of a credit application
Before preparing the first credit application for a client, the commercial units
must do the followings:
1 Meet the client and discuss the credit facilities needed by him.
2 collect all the information required by the law such as the details about
the owners/shareholders of a company, the percentage of stock holding,
the degree of relationship, the balance of credit facilities granted to the
client from other banks. A credit application shall not be accepted before
fulfilling all the required information and confirmation of its validity and
correctness ( art 62 of the banking law No 88 -2003).
3 obtain the financial statements for the last three years, audited by
auditors properly registered by the regulatory authorities.
4 Assess the CBE – CAP ( credit aggregate position published by
Central Bank of Egypt )
5 Get a recent investigation report which has to be updated every six
months ( art. No 68 of the New Banking Law No 88-2003 and art 19
of the Executive Regulations )
6 Get a proper valuation of the assets offered as collaterals. For real
estate assets, the valuation should be done by expert houses registered
at Central Bank of Egypt and reported on a register Moreover this
valuation has to be reviewed periodically ( art. No 68 and 69 of the
New Banking Law No 88 ).
A credit application (paper or electronic) has to be prepared which should at
least contains the following documents ( for more details please refer to appendix
5 attached ) :
1 Executive Summary
2 Presentation and justification of the credit facilities requested
3 Standardized financial notice which includes balance sheets, income
statements, cash flows, ratios, for the past three years and a synthesis
form. Extra care should be given to feeding the synthesis form because
it is the back bone in processing credit applications at SG Paris
(BHFM/RIS).
4 Standardized business analysis
5 CBE – CAP ( credit aggregate position of Central Bank )
6 Relationship with NSGB/account performance
7 Return on equity calculation
8 RAROC report on Starweb
9 Recent investigation report
Other documents can be added if they are helpful for the credit analysis such as
financial projections (if needed).
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2.5.3 Extension and renewal
It is imperative to review (and if necessary renew) all the working capital facilities
granted to a client with a validity of 12 months before their expiry dates.
When expired, the credit facilities granted to a client are frozen at the level of
utilisation at their expiry date. This means that :
- in case of excess over limits, an immediate action should be taken to bring
back the exposure within the expired limits
- in case of lower utilisation, no upward utilisation’s are allowed until the
renewal of the limits, only downward utilisation are authorised
- in case of an emergency transaction which would result in an upward
utilisation or an excess over the previous expired limits, prior approval from the
competent credit committee must be obtained.
There are three kinds of situations :
1. For some clients, the commercial units are not willing to renew the credit
facilities and want to enforce a phasing out strategy. These cases must be
submitted to the Watch Names Committee (WNC) for decision by using the
standardised form designed for that purpose. If the phasing out strategy is
confirmed, the WNC will fix targets and a deadline for phasing out. (for
more details please refer to the paragraph 2.8 and appendix 7 about the
Watch Names Procedure).
2. For some clients the commercial units are willing to renew the credit
facilities, but are not in a position to submit a full credit application for renewal
for various reasons (waiting for recent financials, changes of legal status,
reorganisation, merger, privatisation etc.). For these cases, a specific memo
must be submitted to the concerned credit committee, to explain the reasons
of delay and to request a temporary extension of the existing credit facilities
by using the specific form designed for that purpose. ( refer to appendix 6
attached ). But this procedure cannot be used for credit facilities expired for
one year or more. In this case a full credit application must be prepared.
3. For all the other clients a full credit application for renewal of the credit
facilities must be submitted to the competent credit committee before their
expiry dates, with the same contents as described above for a new credit
application and by using the DCCIT forms (Electronic Commercial
International Credit file) as described in appendix 4. Besides, as per article
57 of the banking law No 88-2003, in addition to the documents listed above
in paragraph 2.5.2, before submitting its credit application, the branch must
get the customer’s confirmation of the existing balance of the credit facilities
previously granted.
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Always the commercial units should be organised to submit simultaneously,
for renewal, all the credit applications pertaining to a group of clients. This
even makes more sense when a global ceiling for the group is in place.
Any credit file expired for more than one year and not renewed without any
satisfactory explanation will be automatically classified as sensitive ( rating
5) until receipt of a full credit application for renewal or an explanatory
memo as described in 1 and 2 above.
2.5.4 Medium term loans and leasing transactions

There are cases where the clients have been granted only medium term loans,
either bilateral either syndicated, or leasing operations which do not require
renewals every year. This does not mean that the bank should not follow the
evolution of the situation of these clients. The commercial units must request
these clients to provide the bank with their audited financial statements,
every year, make an analysis of these statements on the standardised
spreadsheet format used for DCCIT and forward their study to the Risk
Division alongwith a recent investigation report which has to be renewed
once a year as well.
2.6 Authorizations
2.6.1- Registration
All the authorizations of credits granted to clients must be registered in the

information system. The registration is done by the Credit Administration Unit
(CAU) of Banking Services Department after completion of the legal
documentation.
2.6.2- Validity date of the authorizations
1-Term loans
The CAU receives a copy of the notification of approval from the Risk
Division, checks that the run off schedule provided by the branches is
matching with the loan contract approved by the management and complying
with the decisions of the competent credit authority who approved the loan
and then validates the term loan agenda fed by the branches in the
information system.
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2-Working capital facilities
The CAU receives a copy of the notification of approval from the Risk
Division and a copy of the credit documentation from the branches.
After verification that the credit documentation complies with the terms of
the credit approval, the authorizations are registered in the information system in
accordance with the validity date mentioned in the credit notification. If the credits
are maintained for over one year after expiry, the utilizations will be considered as
irregular until a credit application is submitted & approved by the competent credit
authority ( refer to paragraph 2.5.3 above ).
3- Overruns and special transactions
The temporary overruns and special transactions must be approved by
the competent credit authorities and the authorizations, with their proper validities,
are registered in the information system by the CAU like normal authorizations.
2.6.3 Risk rating and interest rates

The approved risk rating and interest rates are also registered in the system by
CAU.
2.7 Follow up and risk control

2.7.1 – Follow up of the limits and exposure
The follow up of the limits and the exposure is done by the Credit Control
Unit of the Risk Division and by the Internal Audit Department (Inspection) of the
Bank ( refer to paragraph 1.6 pages 8&9 defining the roles of the control
units).
2.8 – Watch Names Procedure

It is essential to identify all the clients presenting a risk of deterioration and
to refer these names to the Risk Division as early as possible (refer to appendix no
7 attached describing the Watch Names Procedure).
2.9 – Provisions
A specific procedure regarding provisioning the expected losses on credits
granted to clients will be written and attached as appendix no 8.
2.10 – Recovery
A specific procedure regarding the recovery of non performing credits will be
written and attached as appendix 9.
21
List of Appendix
1- Credit authorities
2- Segmentation manual
3- Ficli request & customer registration
4- RAROC methodology & STARWEB process
5- Credit application (DCCIT )
6- Temporary extension form
7- Watch Names procedure
8- Provisions procedure
9- Recovery procedure
22
THE CREDIT AUTHORITIES
This document is strictly confidential and for internal use only
1 Latest update: December 2004

Purpose of this document:
The purpose of this document is:

To describe in one single document all the credit authorities of the Bank
To get the formal approval of the Board of Directors on the various limits and
rules for credit decisions, in accordance with article No 63 of the banking law
and afterwards to append this document to NSGB Risk Policy.
To facilitate the work of the persons in charge of the internal as well as
external various credit controls
To facilitate the necessary updating of the Credit authorities resulting from
any changes in the Risk Policy and from any movement of staff.
1) Executive Committee (E.C)
The Executive Committee is composed of four members of NSGB Board of

Directors i.e the Chairman, the Vice Chairman, the Managing Director and a fourth
member appointed by the Board of Directors.
The Executive Committee is the highest authority for credit decisions and is
competent to decide about all the credit authorizations exceeding the authorized
limits of the Credit Committee and other lowest credit committees, as defined in
the following paragraphs and within the framework of the Risk Policy approved by
the Board of Directors.
All its decisions are reported to the Board of Directors for further ratification.
2) The Credit Committee (C.C)
The Credit Committee is composed of three NSGB top executives:

1- the Managing Director
2- the General Manager, Commercial Division
3- the Head of Risks Department
If at least 2 members of the Committee are present, they form an adequate

quorum subject to the third member gives a written delegation to represent him to
another member of the Credit Committee.
The Decisions of the Credit Committee are taken validly if approved jointly by
two members. If one of the first two members is not satisfied with the Credit
Committee decision, the case has to be submitted to the Executive Committee.
The duties of the Credit Committee and the credit limits for which it is competent
are defined by the Board of Directors.
The main duty of the Credit Committee is to deliberate and appraise the credit
files which the Executive officers of the Bank shall present to it and which fall
within its credit limits. The dicretionary limits given to the Credit Committee are

applicable to any kind of credit facilities granted to companies, individuals or
group of clients.
The definition of a group of clients is the following :

“A group of companies having the same shareholders when the the main
shareholder ( a company or an individual) has a majority stake (more than
50% of the shareholders equity or the voting rights) or 50% or less than 50%
of the shareholders equity or the voting rights but a blocking minority vote and
a management responsibility and no other shareholder owns a larger stake. “
This definition is based on legal criteria but sometimes the denomination of a

group of clients may be applied to companies and individuals not linked from a
legal point of view but having close relationship, as a fact, such as companies
having different shareholders but the same management or companies linked by
joint or cross guarantees.
The limits and ceilings approved for a group of clients include all the facilities
granted to the companies pertaining to the same group and also all the facilities
granted to the major shareholders and or the managers of these companies, the
guarantees given by the companies to its staff, the leasing operations granted by
Sogelease Egypt and more generally speaking, the notion of group is applicable
to all the credits having the same source of repayment.
The Credit Committee cannot approve credit files related to :

• financial institutions such as banks, brokers, insurance companies etc.
which are subject to Société Générale Paris approval,
• clients subject to specific regulation as per Directive No 25 of Société
Générale ( Clients under the responsibility of CORI or DIST etc.) and
non resident clients in Egypt.
These files must be submitted to the Executive Committee for
approval.
The discretionary limits of the Credit Committee are the followings (in EGP
or equivalent in foreign currencies):
• For Corporates :
• a) 40 Millions EGP for all types of credit facilities 100% secured by :
- cash collateral
- pledged time deposits
- pledged certificates of deposits issued by NSGB up to 10 years
maximum on condition that the tenor of the facilities does not
exceed the maturity date of the certificates of deposits
- bank guarantee issued by a first class bank and duly approved
by Société Générale Paris

• b) 30 Millions EGP for all types of credit facilities unsecured or
secured by other securities than cash collateral, pledged time deposits
or certificates of deposits or first class bank guarantees
In case of facilities secured by pledged shares, the amount of the
facilities must not exceed 70% of the market value of the shares if they
are listed or their book value if they are not listed.
This limit is applicable for corporates rated below 6 (1 to 5) according

to BHFM rating scale or 1 to 7+ according to RAROC rating scale and
for facilities having a maximum tenor of 5 years.
• For the same client or group of clients, in the case of secured facilities
as described in paragraph (a) above and unsecured facilities as
described in paragraph (b) above, the approval from the Executive
Committee is required if the gross exposure exceeds 40 Millions EGP,
irrespective of the net exposure (i.e gross exposure less the amount of
the cash collateral, pledged time deposits or certificates of deposits
and bank guarantee).
2- For individual clients
• a) 10 Millions EGP for secured facilities as follows :

• all types of facilities 100% secured by cash collateral , pledged
time deposits or certificates of deposits issued by NSGB or first
class bank guarantee duly approved by Société Générale Paris
and having a maximum tenor of 5 years
• loans 100% secured by pledged NSGB 10 years certificates of
deposits for a maximum duration of 10 years on condition that
the tenor of the facilities does not exceed the maturity date of
the certificates of deposits.
• real estate loans secured by a first rank mortgage for a
maximum tenor of 10 years
• b) 5 Millions EGP for all types credit facilities unsecured or secured

by other securities than cash collateral, pledged time deposits or
certificates of deposits or first classs bank guarantee, for a maximum
duration of 5 Years.
In case of facilities secured by pledged shares the amount of the
For the same client, in the case of secured facilities as described in

paragraph (a) above and unsecured facilities as described in
paragraph (b) above, the approval from the Executive Committee is
required if the gross exposure exceeds 10 Millions EGP, irrespective of
the net exposure (i.e gross exposure less the amount of the cash
collateral, pledged time deposits or certificates of deposits and bank
guarantee).

The Credit Committee can also approve:
• Any change in terms of amount, duration, conditions and securities related
to facilities falling within its own limits as defined above for the Credit
Committee. But if the file has been previously approved by the Executive
Committee, its approval is required.
• Specific transactions curved out of facilities and within the ceiling already
approved by the Credit Committee or by the Executive Committee and still
valid.
• Excess over limits or a ceiling of facilities previously approved by the
Credit Committee or the Executive Committee and still valid, up to a
maximum of 20% of the limit or ceiling. The excess should be for a
temporary period of two months from the excess drawn down date and can
be extended only for a further period of two months.
The Credit Committee is allowed to write off outstandings for a maximum

amount of one Million EGP per client or group of clients , principal or
interest, by debiting the profit and loss account or using existing stocks of
provisions or reserved and statistical interests. For any write off exceeding
one Million EGP for a client of group of clients, the approval of the Board of
Directors must be obtained.
The Credit Committee is authorized to delegate some of its powers to the

Managing Director, to lower committees or to any NSGB Officer up to a
maximum of 75% of its own limits in terms of amount, but has to inform the
Board of Directors, afterwards, about the delegated limits.
The limits presently delegated to lower committees and to NSGB officers are
described in the following paragraphs.
3) The Sub-Credit Committees (SCC)
There are two Sub-Credit Committees. Their duty is to appraise and to decide on
credit files which the Executive officers of the Bank shall present to them and
which fall within their credit limits.
3.1) The Sub-Credit Committee ( Domestic clients )
This Sub-Credit Committee is composed of two members : the Head of Corporate

Relationship Unit (CRU) and the Head of Risks Department.
The dicretionary limits given to this Sub-Credit Committee are applicable to any
kind of credit facilities granted to companies majority owned by Egyptian
shareholders or groups of clients (as defined page 3 above) controlled by
Egyptian shareholders.

3.2) The Sub- Credit Committee ( Multinational clients)
This Sub-Credit Committee is composed of two members : the Head of

Multinationals Relationship Unit (MRU) and the Head of Risks Department.
The discretionary limits given to this Sub-Credit Committee are applicable to any
kind of facilities granted to companies or groups of clients (as defined page 3
above) followed by the Multinational Relationship Unit.
The decisions taken jointly by the two members of the two Sub-Credit
Committees are final.
The files falling within the following mentioned limits or criteria will be
submitted to the Credit Committee only in case of disagreement between the two
signatories or in case of absence of one of them.
The discretionary limits of the Sub-Credit Committees are the followings (in EGP
or equivalent in foreign currencies):
• a) 10 Millions EGP : for facilities secured up to 110% by :

- cash margin,
- pledged time deposits with NSGB or NSGB
Certificates of Deposits up to 10 years maximum on
condition that the tenor of the facilities does not
exceed the maturity date of the certificates of
deposits
- first class bank guarantee duly approved by Société
Générale Paris
• b) 5 Millions EGP for all types credit facilities unsecured or secured
by other securities than cash collateral, pledged time deposits or
certificates of deposits or first classs bank guarantee, for a maximum
tenor of 5 Years.
In case of facilities secured by pledged shares the amount of the
This limit is applicable for corporates rated below 5 (1 to 4) according

to BHFM rating scale or 1 to 6+ according to RAROC rating scale and
for facilities having a maximum tenor of 5 years.
• For the same client, in the case of secured facilities as described in

paragraph (a) above and unsecured facilities as described in
paragraph (b) above, the approval from the Credit Committee or
Executive Committee is required if the gross exposure exceeds 10
Millions EGP, irrespective of the net exposure (i.e gross exposure less
the amount of the cash collateral, pledged time deposits or certificates
of deposits and bank guarantee).

The Sub Credit Committees can also approve :
• changes in amount, duration, conditions and securities for credit files rated
to 1 to 4 (BHFM rating) or 1 to 6+ ( RAROC rating) within the limits
mentioned above. If the file has been previously approved by the
Executive Committee or the Credit Committee, the approval of the
concerned committee is required for any changes.
• specific transactions curved out of facilities already approved by the Sub

Credit Committee or by the Credit Committee and still valid, for customer
rated 1 to 4 ( BHFM rating) or 1 to 6+ ( RAROC rating), on condition that
this does not result into an increase of more than 20% of the clean
exposure approved by the Credit Committee.
• an excess over a limit already approved by the Executive Committee or

the Credit Committee and still valid for customers rated to 1 to 4 (BHFM
rating ) or 1 to 6+ ( RAROC rating), up to 20% of the limit and for
maximum amount of 5 Million Egyptian Pounds for a maximum period
of 2 months.
4) The Regional Credit Committees
Further to the reorganization of NSGB network, it has been decided to create

new credit committees called Regional Credit Committees.
The first Regional Credit Committee was set up for Cairo Downtown area in
November 2002 and is competent to decide about credit files of companies or
groups of clients from Talaat Harb and Champollion Branches and a second one
was set up in January 2004 for Alexandria area and is competent to decide about
credit files of companies or groups of clients for Roushdy and Borg El Arab
branches.
There are separate committees for each branch. The committees are composed of
two members : the Regional Manager and the concerned mixed branch Manager.
The mixed branch managers keep their own limits as defined below , paragrah 6,
for their own the Branch Credit Committee .
4.1 Facilities to Corporates:
The Regional Credit Committees are allowed to grant facilities to companies or

groups of clients (as defined page 3 above) exceeding the limits of the Branch
Credit Committee as follows ( in EGP or equivalent in foreign currencies ) :
• 3 Millions EGP for facilities to a company or to a group of clients secured

up to 110% by cash margin, pledged time deposits with NSGB or NSGB
Certificates of Deposits up to 10 years maximum on condition that the
tenor of the facilities does not exceed the maturity date of the
certificates of deposits

• 1 Million EGP for unsecured facilities to a company or a group of clients
rated 1 to 4 (BHFM rating ) or 1 to 6+( RAROC rating ) for a maximum
tenor of three years
• The Regional Committees can also approve :
- changes in nature of facilities, amount, duration, conditions and

securities for credit files rated to 1 to 4 (BHFM rating) or 1 to 6+
(RAROC rating) approved previously by the Regional Credit
Committee within the limits mentioned above. If the file has been
previously approved by the Executive Committee, the Credit
Committee or Sub-Credit Committees, the changes must be approved
by the concerned committee.
- specific transactions curved out of facilities within a global limit
already approved by the Credit Committee or the Sub-Credit
Committees and still valid for companies rated 1 to 4 ( BHFM rating)
or 1 to 6+ (RAROC rating) on condition that this does not result into
an increase of more than 20% of the clean exposure approved by these
committees.
The Regional Credit Committees are not allowed to grant facilities against
shares or bank guarantees.
4.2 Excess over limits

It is not a normal practice to grant excess over limits. Moreover, large and
frequent overruns for the same customer are not acceptable. Nevertheless, in
order to facilitate the daily work, the Regional Committee can approve excesses
over limits for limited amount and for a short period of time as follows :
a) 20 % above its own limits for credit files rated 1 to 4 (BHFM rating) or 1
to 6+ (RAROC rating) on condition that the limits are valid and for two
months maximum from the excess draw down date
b) 20% above the limits approved by the Executive Committee, the Credit
Committee or the Sub Credit Committees subject to the following
conditions :
- valid limits
- for companies rated 1 to 3 (BHFM rating) or 1 to 5- (RAROC
rating)
- for a maximum amount of 20% of each separate line and total
overrun should no exceed EGP 1.5 Million
- for two months maximum starting from the excess draw down date

4.3 Facilities to individuals
For individuals whose commitments are not considered as part of Group of

clients, the rules defined in paragraph 5 below are applicable.
5) The Individual Banking Credit Authorities
The authorized persons are the followings :

1. The General Manager, Commercial Division
2. The Head of Retail Banking
3. The Regional Managers (for the areas under their authority only)
4. The Operations Manager of Retail Banking
5. The Sales Managers of Retail Banking
Any facility exceeding the limits of the General Manager Commercial Division
must be submitted to the Credit Committee for approval.
The above mentioned persons can approve facilities to individuals exceeding the
branch limits described in # 6 following as follows:
5.1 Credits classified I.1 (fully secured)

5.1.1. Short term facilities (less than one year) funded or unfunded , secured
by cash cover, pledged time deposits with NSGB, pledged certificates of deposits
issued by NSGB with a minimum margin of 10%
5.1.2 All types of personal loans fully secured by pledged time deposits
with NSGB or pledged certificate of deposits issued by NSGB, having the
same duration, for maximum 10 years and with a minimum margin of 10%.
The General Manager, Commercial Division: EGP 1 500 000

The Head of Retail Banking :EGP 1 000 000
The Regional Managers :EGP 750 000
The Operations Manager and the Sales Manager signing jointly:EGP 500 000
The Sales Manager signing alone: EGP 250 000
5.2-Credit classified I.2 (within an approved scheme)
5.2.1 Loans within an approved Individual Banking Scheme (such as car loans
or cash loans etc...)
- The General Manager, Commercial Division: EGP 1 000 000
- The Head of Retail Banking : EGP 750 000
- The Regional Managers : EGP 500 000
-The Operations Manager and Sales Manager signing jointly:EGP 300 000
- The Sales Manager signing alone: EGP 150 000
5.2.2 Real estate loans complying with the approved criteria for a
maximum duration of 10 years

For the purpose of giving more flexibility, commercial delegations are given to
the General Manager, Commercial Division, the Head of Retail Banking, the
Operations Manager and the Sales Managers regarding pricing and some loan
criteria
a) Pricing
Head of Retail Operations Sales Manager
Banking Manager & Sales alone
alone Manager jointly
Interest rate Minus 2% below Minus 1,5% below Minus 1% below
normal rate normal rate normal rate
Early redemption Up to 1% instead Up to 2% instead Up to 2,5% instead
fee of 3% of 3% of 3%
b) loan criteria
Head of Retail Operations Sales Manager
Banking Manager & alone
alone Sales Manager
jointly
Debt ratio of For payroll clients For payroll clients For payroll clients
borrower(monthly only, up to 30% if only up to 30% if only up to 27% if the
installment/monthly the monthly the monthly monthly revenue
revenue ) revenue exceeds revenue exceeds exceeds EGP 6000
EGP 3000 EGP 5000
Debt ratio of the Up to 35% as a Up to 30% as a Up to 27% as a
guarantor guarantor if the guarantor if the guarantor if the debt
debt ratio of the debt ratio of the ratio of the borrower
borrower is equal borrower is equal is equal or below
or below 25% or below 25% 25%
Waiving guarantor For payroll clients For payroll clients Not allowed
only, if the debt only, if the debt
ratio of the ratio of the
borrower is equal borrower is equal
or below 25% or below 20%
Waiving Only if the Only if the Not allowed
undertaking by the guarantor is not guarantor is not
company waived waived
Accepting special Yes, after formal Yes, after formal Not allowed
format for approval of legal approval of legal
undertaking by the department department
company
Transfering the Yes, only in the Yes, only in the Not allowed
installment instead scheme of a scheme of a
of the salary global agreement global agreement
signed by the signed by the
company company
Waiving the salary Yes, but only for Yes, but only for Not allowed
certificate NSGB staff NSGB staff.
Any exception not mentioned or exceeding the conditions mentioned in the
above tables must be approved by the General Manager, Commercial Division.

5.2.2 Credit Cards Limits
Names Payroll Clients Cards fully secured

by pledged deposits
Number of Maximum
months Limits
The General Manager Up to 3 EGP 100 000 EGP 150 000
Commercial Division months of net
salary
The Head of Retail Up to 3 EGP 50 000 EGP 100 000
Banking alone months of net
salary
The Operations Manager Up to 3 EGP 30 000 EGP 50 000
jointly and the Sales months of net
Manager jointly salary
The Sales Manager alone Up to 2 EGP 15 000 EGP 30 000
months of net
salary
5.3 Credit classified I.3 (credits excluded from the branch limit)
- The General Manager Commercial Division : EGP 500 000

- The Head of Retail Banking Group :EGP 75 000
- The Regional Manager of Down Town area :EGP 60 000
- The Operation Manager and the Sales Manager signing jointly:EGP 50 000
The above mentioned limits may be used to grant:
- loans not falling within an IB scheme up to three years maximum
- loans within an IB scheme but with some criteria not satisfied and not
falling within the exceptions described above
- clean overdraft
Facilities secured by pledged shares or bank guarantee are excluded from

these limits and must be submitted to the Credit Committee for approval.

6 ) DISCRETIONARY LIMITS OF BRANCHES (in 000 EGP)
The limits delegated by the Credit Committee to the Branch Credit Committees are
described in the following tables.
The rules regarding excess over limits are mentioned in Appendix 3.
Branch Category Branch Category Branch Category

A(1) B(1) C(1)
(Corporate and (Corporate and ( Individual
Individual Banking) Individual Banking) Banking )
Credit to Companies (C )-See Appendix 1

Class C 1 1500 1000 Nil
Class C 2 500 250 Nil
Class C 3 Nil Nil Nil
Credit to Individuals (I)- See Appendix 2

Class I 1 150 125 100
Class I 2 125 100 75
Class I 3 Nil Nil Nil
Ceiling I 1+I 2 200 150 100
Global ceiling for Group of
2000 1250 100
Clients (C+I)
(1) CLASSIFICATION OF NSGB BRANCHES
CATEGORY A
Talaat Harb Champollion Heliopolis Roushdy
Mohandessin 6th October
CATEGORY B
Borg El Arab Haram Makram Ebeid New Maadi
CATEGORY C
Bab El Louk Abbaseya Roxy Hadayek El Kobba El Hegaz
Nozha New Nozha Sheraton Residence Safir Ard El Golf
Abbas El Akkad Maadi Maadi Degla Shehab
Dokki Agouza El Messaha Sphinx Zamalek
Manial Shobra Faisal Giza El Tayaran
Kafr Abdou Semouha Zizinia Down Town Alexandria
Hurghada, Sudan, Farid Semeka

APPENDIX 1 : RISK CLASSIFICATION of CREDITS to COMPANIES ( C )
Class C 1 Class C 2 Class C 3

(Fully Secured facilities) (Unsecured facilities) (Excluded from the
Branch’s Discretionary
Limits)
Short term funded facilities Short term funded
(Less than one Year ) facilities ( less than one - Facilities against shares or
-overdraft year ) deposit located in other
- post-finance of L/Cs Bank or certificates of
- short term loans overdraft, post-finance of deposit issued by other
L/Cs, short term loans banks
Subject to be fully secured by - Discount of bills, cheques,
cash cover , pledged time Discount of bills, cheques, acceptances without
deposits located in NSGB or acceptance recourse
certificate of deposits issued with recourse - Facilities against bank
by NSGB and with a guarantees (local or foreign)
minimum margin of 10%
- Financing of real estate
( all type of facilities )
Unfunded facilities :
Short term unfunded - Letters of guarantee to be
facilities issued abroad
- letters of credit, ( less than one year ) :
- stand by L/CS, - Credit to multinationals
- letters of guarantee - letters of credit,
- stand by L/CS, - Credits to non residents
Subject to be fully secured by - letters of guarantee
cash cover, pledged time - Medium term or long term
deposits located in our bank loans ( exceeding one year)
or certificate of deposits
issued by NSGB - Rescheduling of existing
facilities
‫ــــــــــ‬
- The maturity date of the - Credit to banks
pledge agreement must be
the same as the maturity - Project finance
date of the facilities.
- The securities cannot be - Syndicated facilities
released until full
settlement of the facilities. - Bridge Loans
- The same limits are
applicable for facilities secured - Guidance limits
by cash cover or pledged TDs
& CDs

FOR CREDIT to COMPANIES (C)
Conditions to start a new relationship:

- Balance Sheet and Profit and Loss account published less than 12 months before
date of credit application.
- Maximum leverage : 1.5 : 1
- Turnover (Sales) not less than LE 7.5 Mio.
- Profitable companies, and at least having a break-even point for start-up

companies
- Sensitive sectors are forbidden such as, Agriculture, Poultry, Tourism,

Contracting and Real Estate, unless fully secured
- Risk-Rating : 1 to 4 , with proper justification.
- Investigation report is required for new relationship, and to be updated on regular

basis once a year.
- CBE –CAP for borrower/new relationship and its guarantor(s) to be obtained and
checked before granting/renewing credit.
If all these conditions are not satisfied, the credit applications must be submitted to
Risk Department.
Rules:
There are limits notified for each category of risk class (C 1) and class (C 2), a limit
"nil" for class ( C 3 ) and a Global Ceiling for group of clients including credit to
individuals ( refer to definition below ).
The credits listed in class ( C 3 ) are excluded from the branch’s discretionary limit.
But this list is not limitative : all type of facilities not stated in class C 1 and C 2 are
excluded.
The limits are applicable for a “single company” or a “group of clients”
A group of clients is defined as one or more of the following:
The definition of a group of clients is the following :

1-a group of companies having the same shareholders
2-when the main shareholder ( a company or an individual) has
- a majority stake (more than 50% of the shareholders equity or the
voting rights)
or

- 50% or less than 50% of the shareholders equity or the voting rights
but a blocking minority vote and a management responsibility and no
other shareholder owns a larger stake.
This definition is based on legal criteria but sometimes the denomination of a

group of clients may be applied to companies and individuals not linked from a
legal point of view but having close relationship, as a fact, such as companies
having different shareholders but the same management or companies linked by
joint or cross guarantees.
The limits and ceilings approved for a group of clients include all the facilities
granted to the companies pertaining to the same group and also all the facilities
granted to the major shareholders and or the managers of these companies, the
guarantees given by the companies to its staff, the leasing operations granted by
SOGELEASE EGYPT and more generally speaking, the notion of group is
applicable to all the credits having the same source of repayment.
The use of limits is subject to constitution of a credit application that fulfills the
following:
- A rigorous study of risks.
- Satisfaction of all conditions stated above.
A fully comprehensive credit file must be elaborated in any case, even when the
facilities are fully secured by cash cover or pledged TDs & CDs.
The approval of the credit file as well as implementation of the limits should be
approved by the Branch Credit Committee, composed of at least 3 members,
including the Branch Manager.
The composition of the Branch Credit Committee is proposed by the Branch and
submitted to the Human Resources Manager for review. After getting the opinion of
the Human Resources Manager, the nomination of the members has to be approved by
the General Management. The Risk Department is notified of the composition and
any modification of each Branch Credit Committee by the Human Resources
Manager.
The Branch credit committee can take decisions only if at least two members are
present including the Branch Manager.
All attending members should give their approval unanimously. In case of any
disagreement of one the members, the application must be submitted to Risks
Department.
A copy of approved credit files must be dispatched to Risks Department, on weekly

basis, for information.

APPENDIX 2: RISK CLASSIFICATION of CREDITS to INDIVIDUALS ( I )
Class I 1 Class I 2 Class I 3

(Fully secured facilities) (Facilities under an (Excluded from the
approved retail scheme) Branches Discretionary
Limits)
Short term credits ( less Loans under an approved - Clean Overdraft or loan not
than one year ), funded or retail scheme such as : falling within a scheme or
unfunded - Car loans criteria not satisfied
- Overdraft - Cash Loans
- L/C’S – L/G’s - Durable goods loans - Overdraft or loan against
- Education loans shares or deposit located in
Loans with same maturity - Speed loans other Bank or certificates of
as the pledged deposit with - Salary advances deposit issued by other
a maximum duration of 10 - Real Estate loans banks
years .
- Overdraft or loan against
Subject to be fully secured by bank guarantees ( local or
cash cover, pledged time foreign )
deposit located in NSGB or
certificate of deposits issued - Rescheduling of existing
by NSGB and with a facilities
minimum margin of 10%
- Unsecured L/G’s
- The maturity date of the
pledge agreement must be - Real Estate loans within
the same as the maturity the mortgage law
date of the facilities. (centralized at Head
- The securities cannot be Office )
released until full
settlement of the - Credit cards limits
facilities. (centralized at Head Office
- The same limits are and defined page 9 above)
applicable for facilities
secured by cash cover or
pledged TDs & CDs

FOR CREDIT to INDIVIDUALS (1)
Rules:
The Credit Committee has determined a limit notified for each category of risk classes
(I.1 and I.2 ), a limit "nil" for category of risk class (I.3) as well as a global ceiling for
a single client.
These lists will be updated later depending on the development of new products.
The credits listed in class (I.3 ) are excluded from the branch's discretionary limits.
But this list is not limitative: all credits not stated in class (I.1) and (I.2 ) are excluded.
For the credits listed in class (I.2 ), the limits can be used only if all the criteria and
securities stated in the scheme are satisfied.
The limits for individuals are not applicable separately for persons being the major
shareholders or having interest or managing companies with authorized facilities
granted by NSGB or SOGELEASE EGYPT. In this case, the limits applicable must
be within the Global limit or ceiling for a group of clients, and on condition that there
is a credit file with a valid limit approved in accordance with the conditions and rules
defined for credit to companies.
The Branch Credit Committee is also responsible for approving any credit file to
Individuals. However in the case of individuals, the Head of Individual Banking
within the branch must approve the credit file before it is submitted to the Branch
Credit Committee.
All the applications for credits to individuals

- exceeding the branch limits
- within the branch limits, but having conditions and criteria not satisfied
must be submitted to the individual banking authorities as defined in paragraph 5,
pages 8 to 11 above.

APPENDIX 3: EXCESS OVER LIMITS GRANTED BY BRANCHES
It is not a normal practice to grant excess over limits. Moreover, large and frequent
overruns for the same client are not acceptable.
Nevertheless, in order to facilitate the daily work, the branches can approve excesses
over limits only for limited amounts and for a short period of time.
The following rules are applicable :
1) The branches are allowed to grant excess of 10% over their own discretionary
limits, as defined in the present circular, for two months maximum from the excess
draw down date.
2) The branches are allowed to grant excess of 10% over the limits approved by the
highest credit committees subject to following conditions:
- valid limits
- only for companies rated 1 to 3 (BHFM rating) or 1 to 5 ( RAROC rating)
- maximum amount : 10% of each separate line and total excess must not to
exceed 1 Mio EGP.
- for two months maximum from the excess draw down date
The Branch Credit Committee cannot amend the nature of the facilities, the amount,
the duration, the terms and conditions and the securities for a credit file which has
been approved by a higher Credit Committee. In this case, the approval of the
concerned committee is required.

Segmentation Manual
Segmentation Manual Page 1 of 15

OTU-latest update 22.08.04
Contents:
Page
• Index …………………………………………………. 3
• Objective …………………………………………………. 4
• Description …………………………………………………. 5
• Procedure …………………………………………………. 10
• Screen …………………………………………………. 12
• Appendix I …………………………………………………. 14
• Appendix II …………………………………………………. 15

Index :
Page
• Objective …………………………………………………. 4
What is the link between Basel II and Segmentation
New Basel II ratio
Segmentation
The Mandatory Criterion
• Description ……………………………………………………. 5
To sum-up the segmentation of corporate clients
Please choose one from the following 7 segments codes
Other possible segments
The notes ……………………………………………………. 6
Definition
Description
Special case ……………………………………………………. 9
• Procedure ……………………………………………………. 10
Parties involved
Legal Documents:
Time limit:
The role of each party / The process cycle:
1. Credit Department at branches.
2. Risk assessment Unit (RAU)
3. Multinational Relationship unit (MRU)
4. Corporate Relationship Unit (CRU) ……………. 11
5. Customer Services Department at branch level
6. Credit Control Unit (CCU)
• Screen ……………………………………………………. 12
• Appendix I G10 ……………………………………………………. 14
• Appendix I Banks ……………………………………………………. 15

Objective
What is the link between Basel II and Segmentation:
Segmentation is a part of a big project “Basel II program” conducted by SG to

meet the requirements of the French Banking Commission (Commission
Bancaire).
New Basel II ratio:
The start-up of the Basel II calculations of “New Solvency ratio” will be phased in
calculations of 3 types of risks: credit, market and operational risks.
The new solvency ratio will measure the minimum capital requirements to cover
these risks.
Segmentation:
The full set of calculations to be made for Credit Risk is based on a breakdown
between exposures into different portfolios and sub-portfolios.
BHFM is introducing a system of customer segmentation in accordance with the

SG group repository. It is based on 7 reference markets are as follows:
Market Name Market code

1. Private Individuals 101
2. Professionals 102
3. Associations 103
4. Enterprises (corporate) 201
5. Finance Customers 202
6. Sovereign and Supranational Risks 203
7. SG Group 301
Each market is broken down into several segments to give a more detailed,
homogeneous customer segmentation.
A summary table defining the segments is attached in the appendix.
The Mandatory Criterion
There is only mandatory criterion concerns with the entity's legal structure -
"natural person" or "legal entity" – as this is a decisive factor in risk monitoring.

Description
To sum-up the segmentation of corporate clients (Legal Entities):
The companies having turnover below 1.5 Mio Euro (around 11 Mio EGP) are
considered as very small companies and classified in the category of
professionals (102).
All the other companies having a turnover over 1.5 Mio Euro (around 11 Mio
EGP) are segmented into six categories within the enterprises (corporate) (201).
Please choose one from the following 7 segments codes:
Segment Segment
Code Description Recommended Segmentation Criteria
Very small
10202 enterprises Turnover below EUR 1.5 Mio and not G10
20101 Small enterprises Turnover between EUR 1.5 Mio and EUR 7.5 Mio and not G10
20102 Medium enterprises Turnover between EUR 7.5 Mio and EUR 75 Mio and not G10
20103 Large enterprises Turnover in excess of EUR 75 Mio and not G10
20104 G10 enterprises G10 nationality or belonging to EEE countries
20105 Holdings Private holding companies
Other business
20109 customers Special lending
Other possible segments:
Segment Code Segment Description
10301 Private administrations and associations

20202 Insurance companies
20208 Investment companies
20309 Other sovereign and supranational
For more details please refer to the notes in the following Pages:
Notes:
Corporate segmentation is summarized as follows:
Definition:
1. All private companies irrespective to their legal status ( partnership, limited

liabilities company, Joint stock,……..).
2. All the public sector entities having an industrial and commercial activity,
irrespective to their legal status.
Description:
Class Description
Very small All companies having sales less than 1.5 Mio EURO (around
enterprises 11 Mio EGP).
(corporate) The amount of sales revenue should be looked at either on
an entity basis or on a consolidated basis where the
company is a part of a Group.
Small All companies having sales between 1.5 Mio EURO (around
enterprises 11 Mio EGP) and 7.5 Mio EURO (around 57 Mio EGP).
(corporate)
The amount of sales revenue should be looked at either on
medium All companies having sales between 7.5 Mio EURO (around
enterprises 57 Mio EGP) and 75 Mio EURO (around 570 Mio EGP).
(corporate)
The amount of sales revenue should be looked at either on

Large All companies having sales more than 75 Mio EURO
enterprises (around 570 Mio EGP).
(corporate) The amount of sales revenue should be looked at either on
G10 enterprises A company owned, or majority controlled, and/or managed

(corporate) by a Group having a nationality of G10 or EEE countries .
(List attached in Appendix 1)
Holdings A holding company is a company not having a direct

(Private sector industrial or commercial activity but having equity
companies) participation in subsidiaries or affiliated companies having an
industrial or commercial activities and getting its revenue
from dividends and /or management fees from their
subsidiaries or affiliated companies.
Other business All other clients which cannot be classified in the previous
customers categories of corporate portfolio, especially specialized
(Specialized lending .
Lending) Specialized Lending is defined as follows :
- The loan is provided to an entity that is explicitly
created to finance and/or to operate physical assets;
- The borrower does not hold any other material assets
and his ability to repay the loan depends directly on
the revenues that he receives from the assets being
financed;
- The loan contract provides the lender an important
control over the asset as well as over the revenue that
is generated;
As a result of the previous points, the repayment of the loan
depends more on the generated cash flows rather than on
the ability of repayment as usually estimated for a classic
commercial company.
Within specialized lending, five sub classes are identified by

the Basel Committee :
Project The repayment principally depends on the
Finance (PF) : project cash flows and on the value of the
collaterals
Object Finance (ships, aircrafts, rail equipment…)
(OF): the repayment principally depends on the
cash flows generated by the assets that
have been financed and pledged or
assigned to the lender
Commodities The repayment of the loan depends on the
Finance (CF) proceeds of the commodities sales
Income- The repayment depends on the cash flows
Producing Real of the real estate project (rental payments
Estate (IPRE) or sale of the assets)
High-Volatility A category that is still to be defined .
Commercial
Real Estate
(HVCRE)
NB:
In case the client is part of a group and not G10, the turnover estimation will be
based on the group level not the client level.
So please refer to the consolidated balance sheet of the group, but in case it is
impossible to obtain it, please estimate the group turnover volume from the
available information in hand, for example by adding the turnover of our clients in
the group.
Among branch clients, presently classified as corporate, there are four type of
clients requiring a specific segmentation:
Class Description
Private Private associations and organizations such as Labor unions,

administrations religious organizations, etc,……..
and They are segmented within the “Associations” market.
associations
(10301)
Insurance Insurance companies (private or public) are segmented

companies within the “Finance Customers” market.
(20202)
Investment Some investment companies are also segmented within the

companies “Finance Customers” market on condition that they are
(20208) subject to a specific regulators and supervision .
Other sovereign Ministries or other governmental entities.

and
supranational
(20309)

Special case : Sogelease client
Sogelease should be segmented within “SG group” market, it will be segmented

as “Consolidated SG Affiliated Companies” with segment code (30101).
As for other leasing companies, the code is
Class Description
Other banking and Leasing companies
financial institutions
(20219)
Please don't hesitate to contact head office in case a client that doesn't fit in the
pre-chosen segmentation codes set in the manual.

Procedure
Parties involved are:
1. Credit Department at branches

2. Risk Assessment Unit (RAU).
3. Multinational Relationship Unit (MRU).
4. Corporate Relationship Unit (CRU)
Legal Documents:
Commercial registration - Article of Incorporation.

Balance sheet for a client – Consolidated Balance sheet for a group.
Time limit:
1. The first phase contains all corporate clients bearing DAI number, must be
finalized before mid August 2004 to complete the excel sheet, end of
August to feed-in the codes in the UNIX.
2. The remaining credit customers must be finalized before end of December
2004.
3. To continue feeding the segment code for all remaining corporate
customers even if non credit customer, or new customers as a regular
daily task.
The role of each party / The process cycle:
1. Credit Department at branches.
• Make the study of segment codes, by segmenting its credit portfolio.

• Check that all corporate non-credit clients are segmented.
• Check that the segment and market codes are properly fed into the system
2. Risk assessment Unit (RAU)
• Help the branches in case any question is raised up.

• Check the segmentation study made by branches for credit corporate
clients.
3. Multinational Relationship unit (MRU)
• Help the branches in case any question is raised up for Multinational clients.

4. Corporate Relationship Unit (CRU)
• Help the branches in case any question is raised up for groups/clients

managed by CRU.
• Feed-in the segment and market codes into the customer file in Unix.
• Follow-up the accuracy of feeding the segment and market codes in the
customer file in Unix.

Screen
How to access level 4 (Mask 4):
Step 1:
Through accessing Level 1 (mask 1) in the customer file in process 486 in Unix,
at the bottom of the screen a new message will prompt while existing this level.
ITEM NO TO MODIFY: 999 Confirmation? Y
“TYPE ANY KEY TO DISPLAY NEXT INFORMATION SCREEN”
Step 2:
There are two cases:

a) In case of creating the screen, then another message will prompt:
“UNKNOWN CUSTOMER IN COMPLEMENT FILE, CREATE Y/N?” Y
b) In case of modifying the screen, Screen 4 will automatically be

displayed with data.
Step 3:
A new screen will appear.

N.B.: xxx fed by the user xxx will appear automatic
SCCA012
UPDATE COMPLEMENTARY CUSTOMERS FILE 4
CUSTOMER LEVEL : 1
BRANCH NB : 01
CUSTOMER NB : 15001
01 NAE ACTIVITY CODE : 171A ACRONYM: COTTON-TYPE FIBRES SPINN
02 SG SEGMENT CODE : 20102 ACRONYM: MEDIUM ENTERPRISES

MARKET CODE : 201 ACRONYM : ENTERPRISES (corporate)
03 COMPLIANCE RISK RATING : 2 ACRONYM : MEDIUM RISK
FIELD NUMBER TO MODIFY ? __

N.B.:
• The cursor will stop on Field 02 SG SEGMENT CODE.
• Field 02 MARKET CODE will appear automatically once the SEGMENT
CODE is fed.
• Field 01 NAE ACTIVITY CODE is “valid for Individual customers use only”.
It is blocked for corporate and banks customers.
• Field 03 COMPLIANCE RISK RATING is blocked for the time being.
How to exist level 4 (Mask 4):
Upon Confirmation To Exist Yes/No/CANCEL

If Press Y YES- the entry is confirmed and back to mask 1.
If Press N NO- it is still allowed to MODIFY Field 02.
If Press C CANCEL- CREATION IS CANCELLED of screen 4 and back to
mask 1.

Appendix I
G10 countries:
Belgium Canada France Italy Japan Germany UK USA Netherlands Sweden
EEE countries:
Germany Austria Belgium

Denmark Spain Finland
France Greece Ireland
Iceland Italy Luxemburg
Norway Netherlands Portugal
UK Sweden Switzerland

Appendix II
For TFC use only:
The segmentation of banks has to be done as follows:
- Sovereign and Supranational

- The 4 public sector banks: NBE, Bank Misr, Banque du Caire, Bank of
Alexandria : Public Banks (20304)
-SG Group: 4 categories
- Consolidated SG affiliated banks (30102) : BFV, KB, SGBL, SGMB
- Non consolidated SG affiliated banks (30103) : UAB
- SG offices outside France (30108) : SG Tokyo, New York etc.
- Consolidated SG affiliated banks (30102): SG Paris
- Banks (20204): all others banks

RULES FOR PROVISIONS
I – REGULATION RULES FOR SPECIFIC PROVISIONS:
).
According to CBE regulations, the following are the rules applicable to provisions:
- Performing commitments: Commitments not in breach of credit conditions including fully secured
facilities; for example, cash collateral, deposits, treasury notes,……
- Non-Performing commitments: Commitments in breach of the conditions agreed with the bank.
The main signals of breach are:

- The decrease of credit movements below due interest over the specified period,
- The unauthorized excess over limit above 5% of credit line lasting for the specified period, and
- The non-repayment of due instalment for the specified period.
Category Criteria
Significant decline in credit movement

Sub-Standard Unbalanced financial structure
Liquidating the collateral is a possibility.
Same as above
Not highly rated collateral
Doubtful
Negative Equity
Although not certain, loss is possible
Same as above
Bad
Loss is certain, or almost certain.
Provisions are calculated on non-performing commitments according to the corresponding percentages and period of
breach.
Category Minimum Percentage Specified Periods for the Main signals of Breach
Sub-Standard 20% 3 months
Doubtful 50% 6 months
Bad 100% 12 months
Due debt interest, which is unpaid for more than three months should be recorded in statistical records.
Therefore, the current practice is to reserve debt interest for only three months, then freeze the reserve interest account,
and start calculating it as statistical interest from the fourth month.
The write-off of principle is tax deductible, while write-off of reserve-interest and statistical-interest is not tax
deductible.
II – RULES FOR GENERAL PROVISION :
According to CBE regulations, a provision of 1% to be allocated for Performing Commitments.

In this matter we are following the hereunder calculation:
Performing Commitments =
Portfolio + Discounted Bills + Uncovered import L/C’s + Uncovered import L/C’s bills + Uncovered L/G’s.
Excluding:
Fully covered by cash collateral , letter of guarantees, discounted bills on banks, Export L/C’s , Export L/C’s Bills,
Counter guarantees from correspondences.
III- SPECIFIC RULES FOR INDIVIDUALS , VERY SMALL COMPANIES AND PROFESSIONALS
The percentage of provisions for unsecured outstandings (1) ( not secured by cash colateral or pledged
time deposits / Certificate of Deposit) must be progressive according to seniority of occurred incidents
(unpaid debts, accounts without movement…) (2) for all individuals (other than covered by mortgage),
overdraft, consumer credit, credit card use, as well as credits granted to very small companies and
professionals” (3) ,
according to the following minimum rule:
Unpaid debts or accounts without 90 days 180 days 9 month 1 year

movement
Provision rate 25% 50% 75% 100%
Nevertheless the rate must be increased if there is no more friendly relationship, and in case of insincerity or
disappearance of the client,
according to the following minimum rule:
Unpaid debts or accounts without 90 days 180 days 9 month

movement
Provision rate 50% 75% 100%
(1) Outstandings: you have to make provisions for the whole outstanding amount which are not covered by real
unquestionable guaranties and not only the due installments
(2) The movement is not significant when it can not cover the interests for the period
(3) Very Small Companies, and Professional clients: The concept of Very Small Companies is different from
country to country and the classification threshold can vary. In order to be clear and efficient, these rules must
be implemented in any case for the outstanding amounts lower than 100000 EURO
(4) In case the above provision rates are not accepted by fiscal controllers, there shall be settled a
supplementary and fiscally non deductible provision, in addition to the one accepted by fiscal controllers.
Regarding the Private Customers, Very Small Companies, and Professionals, higher than 100000 EURO, and for which
the subsidiary does not want to apply the above mentioned progressive rules, the subsidiary shall fill in an individual
provision form with comments explaining why the risk of losses is supposed to be covered.
NSGB Credit Policy & Procedures – General Rules Watch Names Review
Risks Division Last Update: September 30, 2001
Watch Names Review Process
Objectives
1. One of the main responsibilities of a client manager is to continuously monitor the credit quality of his
portfolio, primarily by detecting any deteriorating credit and to taking all the necessary measures to reduce NSGB
exposure and possible losses.
2. The purpose of this policy is to recall the rules we must comply with in order to ensure a proactive & prudent
management of this kind, that is :
• identify any client, counterparty or group experiencing a strong increase in its default
probability (or a significant risk of increase) , as early as possible and preferably with consistent criteria
throughout NSGB
• quickly refer such name to the concerned higher management level, determine an action plan
and classify it as a Watch Name
• in the most critical cases, immediately apply the appropriate corrective measures and, if
necessary, recommend a loan loss provision (or more exceptionally a write-off).
3. Today, this process takes place either on an on-going basis, or on a monthly or at least quarterly basis. The
Watch Names management is an integral part of the provisioning process and constitutes an indispensable
preliminary and anticipative step. It relies on existing policies and information systems at Société Générale/BHFM.
Scope
4. This policy concerns all NSGB Group client managers, in particular, the mixed branches, the Corporate
Relationship Unit (CRU), the Special Finance and Project Unit (SFP), the Multinationals Relationship Unit (MRU),
Sogelease as well as all the officers responsible for risk validation within RISK Division.
5. This policy applies to

• any kind of credit exposure (direct, contingent, settlement-market & settlement-banking
services)
• any client category or counterparty of NSGB (including project companies or
protection/guarantee providers, etc.)
• all NSGB entities (Coverage, Sectors, Product Lines, branches, subsidiaries)
Watch Names Identification

6. Each commercial manager in any NSGB entity, as well as the concerned risk validation officer is responsible for
identifying names to be put on Watch. In this respect, each one’s judgement and ability to anticipate is crucial. The
objective is to put a name “on watch” when appropriate and well ahead of any classification1 or reserve
allocation recommendation and to undertake all required measures to manage at best NSGB interests.
7. Consequently, situations where a name is placed on the Watch List and classified as “non performing” and
provisioned at the same time should remain the exception and be appropriately justified.
8. A Watch Name is a borrower, a counterparty or a third party “guarantor”, on-going concern or not, confronted to
new economic, industry, technology, political or financial developments implying a deterioration in its credit quality (or
an increased risk of loss for NSGB). Hence, it necessitates a closer analysis and follow up. A Watch Name is
therefore an individual or a legal entity client or counterparty (or the entire client group, when risk magnitude
warrants it) and not one (or several) specific facilities.
9. Factors to be considered when deciding whether or not to put a name on Watch are :
• a major deterioration in its current year financial results compared to forecasts or in its forecasted results
over coming years, that could reduce the company’s ability to meet its financial obligations
i. a significant alteration in its financial structure that may incur losses for the client or the
counterparty
1
Classification rules, in the Egyptian context are detailed in appendix 1.
1
ii. a sudden drop in the company risk rating by several grades (at least 2) and bringing it to below
4
iii. a breach or imminent breach of financial covenants
iv. a significant drop in security valuation (notably pledges related to structured finance
transactions)
v. non publication of expected audited annual reports or serious qualifications from external
auditors and/or refusal to provide an opinion
vi. receiving a negative credit information report
vii. a major change in company’s management, strategy or prospects, implying unfavorable

prospects and sizeable uncertainty in company’s results
viii. appearance of any statistical interest or legal action initiated against or by the borrower and/or
the guarantors in the C.B.E. CAP report
ix. any other specific criteria that might have been defined by Risk Division for certain Product
Lines and specific cases.
10. Based on these criteria, borrowers or counterparties rated below 4, to which we are exposed, should not be
systematically recorded as Watch Names. However, if their operating result is severely reduced compared to
projections, it is worthwhile asking the question. For names unrated or rated 5 and below, a specific review should
take place, once a year, to ensure whether a Watch List classification is warranted or not.
11. Besides, a 3 rated borrower who reports a large loss will not be put on Watch if it benefits from a solid financial
structure enabling it to stand the event.
12. By contrast, any asset subject to a reserve allocation according to Egyptian accounting rules, i. e. classified as
“non performing account” or subject to a legal procedure must be classified as a Watch Name. Likewise, any name
confronted to a credit crisis (for sudden and unforeseeable reasons) should be considered for a Watch List
classification. Of course, any name already provisioned2 is considered as a Watch Name.
13. The systematic search of quantitative data, like

• payment incidents (interests, margin call, etc.),
• third party payment objection,
• continuous drawings (true and long-standing line excession, etc.)
• deterioration of financial data, etc.
should continue to be timely communicated to client managers and the Risks division by back offices. Even if they
constitute an essential source for identifying a possible drop in credit quality, a qualitative assessment remains the
most critical. In case of doubt, it is always preferable to stay conservative and solicit the opinion of direct managers.
Watch Report
14. For each Watch Name, the client manager is required to prepare (or to update) a Watch Report including the
following information:
Identification client (and/or client group) name, ratings, industry codes, NSGB booking
entity, etc.
Classification according to SG risk rating system and local regulations : (CBE circular
dated 9th of September 1991) as described in appendix 1
Consolidated by large exposure category : authorizations, gross outstandings, loan loss

Exposure allocations or recoveries (if warranted), net booked outstandings
Guarantees & nature, amount, tenor, name of « guarantors », valuation, source and
Protections methodology used
2
Deciding whether to propose a reserve allocation or not relies on how the client manager assesses the global risk of loss for the NSGB
given the protections received. If the guarantees and protections are judged as sufficient to cover the potential loss, they can decide
not to provision, even if it is a file in litigation, and simply maintain the name on Watch.
2
Financial Data 3-year summarized + latest quarterly cumulative (or half-year) ; debt
amortization schedule
Financial business description, shareholders, reasons for Watch classification,

Analysis main risks identified, recent changes in the financial structure and
prospects, (client RAROC as soon as possible)
Risk Strategy exposure variations, hedges and protections, provisions, market value of
the debt, credit clauses, actions already achieved, other correlated risks
(country, sector, commercial, reputation, image, etc.)
Recommendatio wait & see, review of the internal rating, exposure reduction, re-
n negotiation of contract terms, request for guarantees, pledges, sales of
assets, purchase of protections, provisions, write-offs, etc.
The current “Provision” files and procedures are not modified.
Watch List Review

15. The 1st phase of the Watch List Review is on an on-going basis. It consists –for the client manager – in
preparing a Watch Report for every new name identified or updating the existing report for every name,
already recorded, & substantially deteriorating. These reports are hence transmitted one by one to the Head of
Risks division.
16. The Recovery department officers’ mission consists in ensuring that the most critical risks have been correctly
analyzed and necessary measures to protect the interests of the bank have been taken (recommended exposure or
provision strategy and applied measures actions, difficulties met, etc.)
17. The 2nd phase of the Watch List Review process takes place each quarter. It covers all recorded Watch Names
(including names recorded on an on-going basis since the last review according to the rules above) and is aimed at
ensuring that:
i. an update of the Watch Report has been done on

• high risk names that have been experiencing major new events or a fast
deterioration ; some of them are updated at each periodic review as long as their situation is
deemed critical
• less serious situations or without major changes are quickly reviewed and
signed; they are subject to a less frequent detailed update, but at least once a year
• names proposed for a deletion from the Watch List
ii. the annual specific review of all unrated names or rated 5 or below in order to
determine whether a Watch classification is warranted, has taken place.
18. The Watch Names Committee selects the Watch Names reports which reflect higher risks but can also selects
files which are not currently identified as sensitive or On Watch. These selected files will then be formally presented
by the Branch Manager and his deputy to the Watch Names committee according to the procedure described in the
internal memo dated 26.09.01.
19. The Watch List review should be an opportunity for a constructive dialogue between the branch and the risk
division in order to manage the NSGB interests at best. However, in the case where the opinion of the risk division
and the branch diverge on the recommended risk strategy, an “enforceable” arbitrage will be made and documented
to be submitted to the Watch Names Committee.
Watch List
20. The NSGB Watch List is formed of several specific data basis including the Watch reports of Sogelease Egypt.
Additions to the Watch List

21.Any NSGB relationship manager who detects a Watch Name will add it to the Watch List by establishing a Watch
Report according to the procedure described above. Risk assessment officers can also add a name to the List, when
they deem it necessary. For such an addition to the List, they need to obtain Head of Risks division prior approval.
3
Deletions from the Watch List

22. When a relationship manager wishes to delete a name from the Watch List,
• he updates the existing report to explain his recommendation (ex: why and how the credit has
improved; why and how the risk of loss for NSGB has become acceptable, etc.) and
• submits it to the Risks Division according to the procedure described above.
Inactive Watch List
23. When most of a Watch Name exposure has been written off or most of its exposure has been provisioned and is
subject to a lengthy litigation process, the name is recorded as “Inactive” to enable consultation of a separate list, the
Inactive Watch list.
24. The Inactive Watch List is reviewed annually by the Risks Division to ensure that all efforts to recover the
amounts written off or provisioned are being made by the commercial people or the Recovery department. The
transfer from an active status to an inactive one or definitive deletion from this list will be done in agreement with the
Watch Names Committee.
4
Appendix 1
EGYPTIAN DEFINITION OF NON PERFORMING COMMITMENTS
The circular letter no 321 dated 9th of September 1991 has defined the following rules.
Non performing commitments are commitments in breach of the conditions agreed by the bank.
The main signals of breach are :
- the decrease of credit movement below due interest over the specified period
- the unauthorized excess over the limit above 5% of credit line lasting for the specified period
- the non repayment of due installment for the specified period.
The non performing accounts are classified into three categories according to the following criteria :
CATEGORY CRITERIA
Sub - Standard Significant decline in credit movement
Unbalanced financial structure
Liquidating the collateral is a possibility
Doubtful Same as above
No highly rated collateral
Negative equity
Although not certain, loss is possible
Bad Same as above
Loss is certain or almost certain
The applicable conformation between SG System and CBE system is as follows
SG RATING CBE RATING
1 to 4 ( normal ) Good
5 ( sensitive ) Good
6A ( sensitive ) Good
6B ( provisioned ) Sub-standard
7 ( provisioned ) Doubtful
8A ( provisioned ) Bad
8B ( provisioned ) Bad
Provisions are calculated on non performing commitments according to the corresponding percentages and period of
breach :
CATEGORY MINIMUM % Specified periods for the main signals

of breach
Sub- Standard 20% 3 months
Doubtful 50% 6 months
Bad 100% 12 months
Unpaid interest, which is due more than three months should be recorded in statistical records .
5
REQUEST FOR TEMPORARY EXTENSION OF EXPIRED FACILITIES
BRANCH : Date :
CLIENT : BHFM Rating: RAROC:

GROUP :
Account Number :
DAI Number :
Sector of activity :
Legal status :
Date of entry into relationship :
Expiry Date of Credit Facilities :
A- LIMITS / EXPOSURE WITH THE CLIENT /GROUP

(figures in thousands )
Outstandings
Type of Facilities Limits Validity Date As at
ODA clean
ODA ag. CP
ODA ag export docts
Postfinance
MT loan (*)
S/TOTAL FUNDED
L/CS
L/LGS
S/TOTAL
UNFUNDED
TOTAL
(*) For term loans, original approved limit to be mentioned
Amount of CP under collection
Amount of export documents under collection
Securities and support or covenants if any
Comments on any overruns or past dues
1-Overruns
2- Past dues of postfinance
3- Past dues of MTL
١
B - FINANCIAL DATA (In case of group consolidated figures if available, otherwise each
company individually)
( figures in thousands )
FINANCIAL STRUCTURE
Year Total Balance Networth Total Debt Total bank's Working Capital
Sheet borrowings
2000
2001
2002
2003
RESULTS
Year Total Sales EBITDA Net Result Cash Flow Financial Costs
2000
2001
2002
2003
COMMENTS ABOUT FINANCIALS ( very brief comments, only if something important is to be

highlighted )
C – ACCOUNT PERFORMANCE (Each company individually in case of group)

(figures in thousands)
2001 2002 2003
Accumulative credit movement

Accumulative debit movement (excluding interest)
Total interest charged to the account
Commercial paper collected
Commercial paper rejection ratio
LCs opened
LGs issued
COMMENTS ABOUT ACCOUNT PERFORMANCE (very brief comments, only if something

important is to be highlighted )
٢
D- COMMENTS :-
1- REASONS OF DELAY IN RENEWING THE CREDIT FILE
2-RECENT EVOLUTION OF SITUATION AND RELATIONSHIP WITH NSGB
3- - BRANCH REQUEST /RECOMMENDATION
BRANCH SIGNATURES
Name : Name : Name : Name:

Date : Date : Date Date :
RISK ASSESSMENT RECOMMENDATION
CREDIT COMMITTEE COMMENTS/DECISION
CREDIT COMMITTEE SIGNATURES
Head of Risks General Manager Managing Director

Date : Date : Date :
٣
REQUEST FOR TEMPORARY EXTENSION OF EXPIRED FACILITIES
BRANCH : Date :
CLIENT : BHFM Rating: RAROC:

GROUP :
Account Number :
DAI Number :
Sector of activity :
Legal status :
Date of entry into relationship :
Expiry Date of Credit Facilities :
A- LIMITS / EXPOSURE WITH THE CLIENT /GROUP

(figures in thousands )
Outstandings
Type of Facilities Limits Validity Date As at
ODA clean
ODA ag. CP
ODA ag export docts
Postfinance
MT loan (*)
S/TOTAL FUNDED
L/CS
L/LGS
S/TOTAL
UNFUNDED
TOTAL
(*) For term loans, original approved limit to be mentioned
Amount of CP under collection
Amount of export documents under collection
Securities and support or covenants if any
Comments on any overruns or past dues
1-Overruns
2- Past dues of postfinance
3- Past dues of MTL
١
B - FINANCIAL DATA (In case of group consolidated figures if available, otherwise each
company individually)
( figures in thousands )
FINANCIAL STRUCTURE
Year Total Balance Networth Total Debt Total bank's Working Capital
Sheet borrowings
2000
2001
2002
2003
RESULTS
Year Total Sales EBITDA Net Result Cash Flow Financial Costs
2000
2001
2002
2003
COMMENTS ABOUT FINANCIALS ( very brief comments, only if something important is to be

highlighted )
C – ACCOUNT PERFORMANCE (Each company individually in case of group)

(figures in thousands)
2001 2002 2003
Accumulative credit movement

Accumulative debit movement (excluding interest)
Total interest charged to the account
Commercial paper collected
Commercial paper rejection ratio
LCs opened
LGs issued
COMMENTS ABOUT ACCOUNT PERFORMANCE (very brief comments, only if something

important is to be highlighted )
٢
D- COMMENTS :-
1- REASONS OF DELAY IN RENEWING THE CREDIT FILE
2-RECENT EVOLUTION OF SITUATION AND RELATIONSHIP WITH NSGB
3- - BRANCH REQUEST /RECOMMENDATION
BRANCH SIGNATURES
Name : Name : Name : Name:

Date : Date : Date Date :
RISK ASSESSMENT RECOMMENDATION
CREDIT COMMITTEE COMMENTS/DECISION
CREDIT COMMITTEE SIGNATURES
Head of Risks General Manager Managing Director

Date : Date : Date :
٣
Name and logo of BHFM entity
(example above: NSGB)
BUSINESS ANALYSIS
Indications in italics are given to fill in the form but it may be that not all of them apply to the present case.
There is no obligation to keep within the number of pages. More pages can be added as necessary. The form is a
general frame which covers about the minimum generally required. After filling the form those indications in
italics can be deleted.
LOCAL FICLI
Client Number
Group Number
BRANCH :
Branch code : Date of the proposal : ………
1 - IDENTITY
Name : Group:
Full legal name (if different):

Address : PCRU : (see Ficli web)
Telephone number : Writer of this document :
Date of start of relationship :
Type of company :
Main activity :
Head Office :
Brief history : origin of the creation of the company, key events in the Company’s history…
Capital evolution :
Year Amounts paid into capital Type Main shareholders**

*
* if capital increase is made in cash (C )or by incorporation of reserves; if otherwise to be explained.

**if company is part of a complex Group, include shareholding diagram
Main subsidiaries
Date of Name Location Activity %

creation or owned
acquisition
If the Company is part of a group : Describe and comment as much as necessary the relationship between the
subsidiary and the mother company : does the subsidiary produce goods/services that are used in the core
business of the group ? How much do the goods/services produced by the subsidiary represent in the group
business ? Does the subsidiary play a key part in the distribution of goods/services of the group ? In the past, did
the Group support its subsidiary, when it meets difficulties ? Does the Company produce goods/services under
the brand names of the Parent?
II - ACTIVITY
Main activities % of sales Country or area where Clients % sales

are located
2.1 Goods or Services sold by the company
Is the company’s business based on one product or diversified ? life expectancy of the product ? Describe the major products
or services and comment on their positioning in the cycle of production (new products, mature ones but yet profitable mature
one likely to go into decline, ….). Comment if necessary on the Company’s capabilities to innovate, …its expertise…
2.2 Description of economic sector, competitors and Company’s positioning
Is the market : a bull market ? very competitive ? cyclical or seasonal? Is there a clear market leader ? What is the area
where competition may extend (local, regional or international ?) Are there barriers to entry of new competitors ?
Specificities of the economic sector : methods of supply, expansion opportunities, external constraints (like protection of
environment constraints, legal regulations), risks linked to the development of substitution products, the impact of
technological progress…
2.3 Market positioning of the company in its sector , in its zone of influence
Ranking of the Company….Its strategy…

2.4 Main Production Centers or offices : mention if it’s ownership (O) or renting (R) or leasing (L)
Location of plants (towns or countries) Location of main points of sale (towns or countries)
Location of Head Office
Please give a brief description and estimated value of real estate properties owned by the Company.
3 – FIXED ASSETS
Describe and comment on the machinery and equipment, age, quality…, the level of computerization( hardware,
software) of the Company, its management tools & technology
Mention if it is likely that the Company should undertake major capital expenditure…
4 - OPERATIONS
4.1 Suppliers
List the main suppliers, the credit terms they offer to the Company, if there is any long term relationship, or
if there are various sources of supply or only a few possible suppliers, whether the Company can negotiate
its buying prices…. , also please comment on the degree of the company’s import dependence.
4.2 Production of goods or services

Describe the production process, anything specific to mention…duration of the production process….
4.3 Clients
List the main customers ,the credit terms offered to them ,the means of payment(cash, transfers...)
Comment whether the Company must rely on few clients or has a diversified clientele….
Comment on the respective bargaining powers of the Company vis a vis its Clients, and in relation to the
market
Explain the distribution process (direct or through wholesalers, Agents….)
Marketing and communication strategy ?
How does the Company cover its risks of default from Clients ? quality of selection, or cash payments, or
cover by an insurance scheme?...
4.4 Operational risks (volatility of prices, foreign currency risk, volatility of interest rates risk):
Comment on the above risks at various stages of the supply, production or selling process. If the Companyis
not exposed to any of these risks, do mention it and if necessary explain why.
5 - HUMAN RESOURCES
5.1 Executives
Enter in the table all most important Executives including those who are the regular interlocutors of NSGB(add
as many rows as necessary)
POSITION/TITLE NAMES / FIRST NAMES Year of Birth Are they an IB

client of NSGB?
For most Senior Executives, please give (as much as possible) some details on their profile, education,
training, past professional experience and skills… :
Other Companies or businesses in which Senior Executives have financial interests or active involvement :
5.2 Staff :
Give information on total number of employees; breakdown of employees according to the Company’s
classification (like : Executives, managers, workers…) ; increase or decrease in total number of employees in
the past few years; are there social benefits ?
You can also comment if appropriate on : staff policy, working atmosphere, training, methods of recruiting,
job flexibility policy– salary policy -
Do the staff require specific skills?
You may add an organization chart
VI - ECONOMIC ANALYSIS
Draw a SWOT analysis of the Company (list the major and” known-for-sure” items) :
Major Strengths: (including , if appropriate, reference to the Company’s strategy)
Weaknesses :
Threats :
Opportunities :
CHARGES OVER THE ASSETS AMOUNTS
(EGP 000)
NIL
TOTAL
OTHER NET ASSETS Registration ESTIMATED

(PARTNERS, GUARANTORS ) VALUE
TOTAL
CONTINGENT LIABILITIES AMOUNTS

( PARTNERS, GUARANTORS ) (EGP 000)
TOTAL
National Societe Generale Bank S.A.E.
Name:
Current Date :
C.B.E. Credit Aggregate Position Date:
EGP (000's)
TYPE OF FACILITY * N.S.G.B ** ALL BANKS
Auth. Lines O/S Auth. Lines O/S
1. Unsecured
2. Secured by commercial paper
3. Secured by Monetary Bills
4. Secured by Agricultural Goods
5. SEC by Warehouses Goods
6. Secured by Real estate mortgage
7. SEC by Commercial Mortgage
8. SEC by Other Securities
9. Secured by foreign & local bills
10. STATISTICAL INTEREST
11. Portion Uncovered for L/Cs
12. Portion Uncovered for L/G's
TOTAL 0 0 0 0
13. GUARANTORS & BILLS AVAILIZATION
* N.S.G.B. Actual total figures same date as C.B.E. Credit Aggregate Position.
** All Banks figures including N.S.G.B. as at date of C.B.E. Credit Aggregate Position.
COMMENTS :
BRANCH :
Account Number :
Customer Name :
Period : From …... up to …….
Currency :
ROE CALCULATION FORM - FORECASTED DATA

FIGURES IN 000 EGP or 000 USD (in case of facilities in FCY)
EXPOSURE AVERAGE WEIGHTING AVERAGE EQUITY

O/S O/S Weighted 8%
1.1) AV. GROSS O/S OF FUNDED SHORT TERM FACILITIES
1.2) LESS CASH COLLATERAL, PLEDGED T/Ds or C/Ds
1.3) AV.NET O/S OF FUNDED SHORT TERM FACILITIES 0 100% 0 0.00
2.1) AV. GROSS O/S OF MTL
2.3) AV. NET O/S OF MTL 0 100% 0 0.00
3.1) AV. GROSS O/S OF L/Gs
3.3) AV. NET O/S OF L/Gs 0 50% 0 0.00
4.1) AV. GROSS LCS EXPOSURE
4.3) AV. NET O/S of L/Cs 0 20% 0 0.00
5) TOTAL AV. NET WEIGTHED EXPOSURE ( 1.3+2.3+3.3+4.3) 0 0 0.00
6) TOTAL EQUITY REQUIRED 0.00
INCOME AVERAGE Percentage AMOUNT ROE

O/S BASE
7) INTEREST RECEIVED+HDB Commission 0 0
8) COST OF FUNDING (-) 0 0
9) STAMP DUTIES (-)
10) NET INTEREST INCOME ( 7-8-9 ) 0.00 0.00
11) COMMISSIONS ON LGS
12) COMMISSIONS ON LCS
13) ALL OTHER COMMISSIONS & FEES
14) TOTAL COMMISSIONS & FEES ( 11+12+13 ) 0 0.00
15) REVENUE FROM NON REMUNERATED DEPOSITS EGP 0.00
16) REVENUE FROM NON REMUNERATED DEPOSITS FCY 0.00
17) REVENUE FROM REMUNERATED DEPOSITS EGP 1% 0.00
18) REVENUE FROM REMUNERATED DEPOSITS FCY 0.2% 0.00
19) TOTAL REVENUE FROM DEPOSITS (15+16+17+18) 0 0.00
20) TOTAL GROSS REVENUE ( 10+14+19 ) 0.00
21) OVERHEADS and TAXES (20% of total gross revenue ) 0.00 20% 0.00 0.00
22) TOTAL NET REVENUE ( 20-21 ) 0.00
23) RETURN ON EQUITY ( 22/6 ) #DIV/0!
Date : 28/03/04
BRANCH :
Account Number :
Customer Name :
Period : From …... up to …….
Currency :
ROE CALCULATION FORM - HISTORICAL DATA

FIGURES IN 000 EGP or 000 USD (in case of facilities in FCY)
EXPOSURE AVERAGE WEIGHTING AVERAGE EQUITY

O/S O/S Weighted 8%
1.1) AV. GROSS O/S OF FUNDED SHORT TERM FACILITIES
1.3) AV.NET O/S OF FUNDED SHORT TERM FACILITIES 0 100% 0 0.00
2.1) AV. GROSS O/S OF MTL
2.3) AV. NET O/S OF MTL 0 100% 0 0.00
3.1) AV. GROSS O/S OF L/Gs
3.3) AV. NET O/S OF L/Gs 0 50% 0 0.00
4.1) AV. GROSS LCS EXPOSURE
4.3) AV. NET O/S of L/Cs 0 20% 0 0.00
5) TOTAL AV. NET WEIGTHED EXPOSURE ( 1.3+2.3+3.3+4.3) 0 0 0.00
6) TOTAL EQUITY REQUIRED 0.00
INCOME AMOUNT ROE

BASE
7) INTEREST RECEIVED+HDB Commission
8) COST OF FUNDING (-) 0 0.00
9) STAMP DUTIES (-)
10) NET INTEREST INCOME ( 7-8-9 ) 0.00 0.00
11) COMMISSIONS ON LGS
12) COMMISSIONS ON LCS
13) ALL OTHER COMMISSIONS & FEES
14) TOTAL COMMISSIONS & FEES ( 11+12+13 ) 0 0.00
15) REVENUE FROM NON REMUNERATED DEPOSITS EGP 0
16) REVENUE FROM NON REMUNERATED DEPOSITS FCY 0
17) REVENUE FROM REMUNERATED DEPOSITS EGP 1% 0
18) REVENUE FROM REMUNERATED DEPOSITS FCY 0.2% 0
19) TOTAL REVENUE FROM DEPOSITS (15+16+17+18) 0 0.00
20) TOTAL GROSS REVENUE ( 10+14+19 ) 0.00
21) OVERHEADS and TAXES (20% of total gross revenue ) 20% 0.00 0.00
22) TOTAL NET REVENUE ( 18-19 ) 0.00
23) RETURN ON EQUITY ( 20/6 ) #DIV/0!
Date : 28/03/04
How to use this file
This file is the financial part of the BHFM credit file, It must be send with the économic file which is the other part
of the credit file,
This model (and the economic one) is available in the Normative Bank and in DCCIT (in english or french versions)
For banks working on DCCIT, credit analysts must, as explained during training sessions, transfer the models from
DCCIT tot heir local disk. As they will fill the document working on their PC, they will not overloaded the network.
Only when the files will be ready, they will have to connect back on DCCIT to fill the screens about the facilities,
then enclosed the 2 files (economic & financial) before send it.
Except this one concerning explanations, tThis xls file enclose one sheet prtint macros, 5 sheets in currency, 5 sheets in
EUR, a sheet with currency rates,
The sheets in EUR are filled automatically form the sheets in currency. The sheets in EUr may be use by Paris. They are
protected,
So the branches must enter dats in the sheets in Currency : Asset-dev , Liabilities-dev , Profit-dev , Synthesis file-
dev
- About the sheet 'Print Macros' allow to print easily via macros a choice of sheet. If macros don't work for xls versions
matter , people could easily print sheet by sheet or several sheet at the same time (select the sheets with ctrl and print)
- 5 sheet in currency
Asset-dev (Asset balance sheet), Liabilities-dev (libailities balance sheet), Profit-dev (Profit & loss account), Rations-dev(
Ratios automatically calculate)
Synthesis file-dev (this sheet summarize the file)
* Ratios-dev : Main ratios are automatically calculate from the datas that have been enter in Asset-dev, Liabilities-dev
, Profit-dev
also includes a simplified balance sheet
* Synthesis file-dev : This sheet is essential, It summarize on one page (but branches can modifed the printing on 2
or 3 pages if needed) the main
informations of the credit file :
- the détail of the credit lines existing, requested an exposure
- list of main garanties
- main ratios (automatically calculate) with under comments of the branches
- statistics about the credits and the account of the counterparty
- a place for the opinion of Director of Risk
- palces for names & functions of people involved in the approval of the file (could be print and send with
signatures)
The branches must
1) First Enter datas in Asset-dev , Liabilities-dev , Profit-dev

* dont't forget to enter at the top of Asset-dev sheet
- name of the branch Row C1 name of the group D2
Name of the counterparty C2
- dates C4 E4 G4 Number of months of exercice C5 E5 G5
- Currency Iso code D3
because these rows filled the other sheets and some are used in ratios calculation
* Don't forget to makes on the rows existing comments on the main variations, on the main accounts
2) second, complete Synthesis file-dev (this sheet summarize the file)with datas that are not automatically
credit lines requested, garanties, comments on ratios, staistics, opinion of the Director of Risks, approval circuit
Pl t th t th t f thi h t it b i d
PRINT MACROS
SHEETS IN LOCAL CURRENCY
Print Synthesis only
Print Synthesis & Ratios
Print Balance sheets & Profit/Loss accounts
Print all (Synthesis & Ratios & Balance sheets & Profit/Loss accounts)
SHEETS IN EUROS
Print Synthesis only
Print Synthesis & Ratios
Print Balance sheets & Profit/Loss accounts
Print all (Synthesis & Ratios & Balance sheets & Profit/Loss accounts)
All documents
Name of the branch NSGB #REF!
ASSETS 1M
Currency - thousands - 000 EGP Saisir le code ISO 3 de la devises ex USD en D3
31/12/01 % 31/12/02 % 31/12/03 %
Number of months 12 struct. 12 struct. 12 struct.
Local inflation rate :
Currency - thousands - 000
INTANGIBLE ASSETS 0 NA 0 NA 0 NA
Goodwill 0 NA 0 NA 0 NA
Trademarks 0 NA 0 NA 0 NA
Intangibles 0 NA 0 NA 0 NA
FIXED ASSETS 0 NA 0 NA 0 NA
Land & buildings 0 NA 0 NA 0 NA
Plant & machinery 0 NA 0 NA 0 NA
Other fixed assets 0 NA 0 NA 0 NA
Investments in progress 0 NA 0 NA 0 NA
- Depreciation 0 NA 0 NA 0 NA
OTHER LONG TERM ASSETS 0 NA 0 NA 0 NA

Related company invest. at equity 0 NA 0 NA 0 NA
Other investments 0 NA 0 NA 0 NA
Debtors 0 NA 0 NA 0 NA
NA NA 0 NA
TOTAL NON CURRENT ASSETS 0 NA 0 NA 0 NA
INVENTORIES 0 NA 0 NA 0 NA
Raw materials 0 NA 0 NA 0 NA
Work-in-progress 0 NA 0 NA 0 NA
Finished goods 0 NA 0 NA 0 NA
Goods in Transit 0 NA 0 NA 0 NA
NA
RECEIVABLES 0 NA 0 NA 0 NA
Advances & prepayments 0 NA 0 NA 0 NA
Trade debtors (Net receivables) 0 NA 0 NA 0 NA
Owed by Group companies 0 NA 0 NA 0 NA
Other debtors (other current assets) 0 NA 0 NA 0 NA
CASH EQ. & CURRENT INVESTMEN 0 NA 0 NA 0 NA

Current investments 0 NA 0 NA 0 NA
Cash and equivalents 0 NA 0 NA 0 NA
NA NA
PREPAID EXPENSES 0 NA 0 NA 0 NA
OTHER CURRENT ASSETS 0 NA 0 NA 0 NA
TOTAL CURRENT ASSETS 0 NA 0 NA 0 NA
TOTAL ASSETS 0 NA 0 NA 0 NA
WORKING CAPITAL 0 NA 0 NA 0 NA
WORKING CAPITAL REQUIREMENT 0 NA 0 NA 0 NA
NET CASH SURPLUS (DEFICIT) 0 NA 0 NA 0 NA
2/2/2005 Financial data & synthesis BHFM va 10-04 final 9-12.xls Assets-dev
LIABILITIES & SHAREHOLDERS' EQUITY 0 0 NSGB
Currency - thousands - 000 0 EGP
0 12/31/2001 % 12/31/2002 % 12/31/2003 %
Local inflation rate : 0.0% 0.0% 0.0%
SHAREHOLDERS' FUNDS 0 NA 0 NA 0 NA
Share capital & premium 0 NA 0 NA 0 NA
Revaluation reserve 0 NA 0 NA 0 NA
Other reserves 0 NA 0 NA 0 NA
Retained earnings 0 NA 0 NA 0 NA
* Non equity reserves 0 NA 0 NA 0 NA
Amounts under capital increase 0 NA 0 NA 0 NA
PROFIT / LOSS for the period 0 NA 0 NA 0 NA
MINORITY INTERESTS 0 NA 0 NA 0 NA
QUASI EQUITY 0 NA 0 NA 0 NA
- TREASURY STOCK 0 NA 0 NA 0 NA
EQUITY & MINORITY INTERESTS 0 NA 0 NA 0 NA
DEFERRED LIABILITIES 0 NA 0 NA 0 NA
DEFERRED TAXATION 0 NA 0 NA 0 NA
LONG TERM LIABILITIES 0 NA 0 NA 0 NA
Bonds 0 NA 0 NA 0 NA
Bank loans LT DEBT 0 NA 0 NA 0 NA
Intercompany debt 0 NA 0 NA 0 NA
Other creditors & liabilities(> 1 year) 0 NA 0 NA 0 NA
TOTAL LONG TERM RESOURCES 0 NA 0 NA 0 NA

Provisions (Other than Doubtful Accounts) 0 NA 0 NA 0 NA
OPERATING LIABILITIES 0 NA 0 NA 0 NA
Customers' advances & prepayments 0 NA 0 NA 0 NA
Trade creditors Accounts payable 0 NA 0 NA 0 NA
Other creditors (other current liabilities) 0 NA 0 NA 0 NA
NA
SHORT TERM DEBT 0 NA 0 NA 0 NA
Long term debt (due whithin 1 year) 0 NA 0 NA 0 NA
Bank loans & overdrafts 0 NA 0 NA 0 NA
Due to Group companies 0 NA 0 NA 0 NA
NA
UNREALIZED INCOME 0 NA 0 NA 0 NA
OTHER CURRENT LIABILITIES 0 NA 0 NA 0 NA
TOTAL LIABILITIES & EQUITY 0 NA 0 NA 0 NA
CONTINGENT LIABILITIES 0 NA 0 NA 0 NA
Guarantees 0 0 0
Other commitments 0 0 0
Leasing 0 0 0
NET WORTH 0 0 0
TESTS ON ASSETS = LiABILTIES & EQUITY 0 0 0
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls Liabilities-dev
PROFIT & LOSS ACCOUNT 0 0 NSGB
Currency - thousands - 000 0 EGP
12/31/2001 % 12/31/2002 % % 12/31/2003 % %
Number of months 12 struct. 12 struct. var./ n-1 12 struct. var./ n-1
Currency - thousands - 000
TURNOVER (SALES) 0 NA 0 NA 0 NA
- Cost of goods sold 0 NA 0 NA 0 NA
GROSS PROFIT 0 NA 0 NA 0 NA
- Selling, adm. & general expense 0 NA 0 NA 0 NA
+ Associated company profits 0 NA 0 NA 0 NA
+ Other operating revenue 0 NA 0 NA 0 NA
- Taxes (other than income taxes) 0 NA 0 NA 0 NA
EBITDA 0 NA 0 NA 0 NA
- Depreciation & Amortisation 0 NA 0 NA 0 NA
- Non operating expenses 0 NA 0 NA 0 NA
+ Non operating revenues 0 NA 0 NA 0 NA
- Provisions 0 NA 0 NA 0 NA
EBIT 0 NA 0 NA 0 NA
+ Interest income 0 NA 0 NA 0 NA
- Interest expense 0 NA 0 NA 0 NA
PROFIT BEFORE TAXES 0 NA 0 NA 0 NA

+ Extraordinary items 0 NA 0 NA 0 NA
- Taxation 0 NA 0 NA 0 NA
0
NET PROFIT 0 NA 0 NA 0 NA
+/- Profit attributable to minorities 0 NA 0 NA 0 NA
0 0
PROFIT attributable to sharehold 0 NA 0 NA 0 NA
GROSS CASHFLOW 0 NA 0 NA 0 NA
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls Profit-dev
RATIOS IN CURRENCY
0 0 NSGB
Ratios
Currency - thousands - 000 EGP
évolution évolution
12/31/2001 12/31/2002 12/31/2003
N/ N-1 N/N-2
Turnover 0 0 0 ns ns
EBITDA 0 0 0 ns ns
EBITDA/Turnover ns ns ns
Net Financial Costs 0 0 0 ns ns
EBTIDA/Net Financial costs ns ns ns
Net Profit 0 0 0 ns ns
Gross Cash Flow 0 0 0 ns ns
ROS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
ROE #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
12/31/2001 12/31/2002 12/31/2003
N/ N-1 N/N-2
TOTAL ASSETS 0 0 0 ns ns
TOT NOT CURRENT ASSETS 0 0 0 ns ns
EQUITY 0 0 0 ns ns
EQUITY/ TOT. ASSETS ns ns ns
NET FINANCIAL DEBT 0 0 0 ns ns
NET FIN DEBT/EQUITY ns ns ns
TOTAL DEBT / NET WORTH #DIV/0! #DIV/0! #DIV/0!
Including Contingent Liab. #DIV/0! #DIV/0! #DIV/0!
TOTAL DEBT / EQUITY #DIV/0! #DIV/0! #DIV/0!
LMTL / NET WORTH #DIV/0! #DIV/0! #DIV/0!
BANK GEARING #DIV/0! #DIV/0! #DIV/0!
NET DEBT / EQUITY #DIV/0! #DIV/0! #DIV/0!
NET DEBT / NET WORTH #DIV/0! #DIV/0! #DIV/0!
(days of turnover)
12/31/2001 12/31/2002 12/31/2003
Inventories DOH #DIV/0! #DIV/0! #DIV/0!
Trade debtors / Turn. #DIV/0! #DIV/0! #DIV/0!
Invent.+ receiv. / Turn. #DIV/0! #DIV/0! #DIV/0!
W/C requirement / Turn. #DIV/0! #DIV/0! #DIV/0!
S/T debts / Turnover #DIV/0! #DIV/0! #DIV/0!
Trade Creditors DOH #DIV/0! #DIV/0! #DIV/0!
Liquidity Ratios:
12/31/2001 12/31/2002 12/31/2003
Current ratio #DIV/0! #DIV/0! #DIV/0!
Quick ratio #DIV/0! #DIV/0! #DIV/0!
Cash flow:
12/31/2001 12/31/2002 12/31/2003
Cash flow / CPLTD #DIV/0! #DIV/0! #DIV/0!
Cash flow / LTD #DIV/0! #DIV/0! #DIV/0!
Cash flow / LTL #DIV/0! #DIV/0! #DIV/0!
Cash flow / Net fixed assets #DIV/0! #DIV/0! #DIV/0!
12/31/2001 12/31/2002 12/31/2003 12/31/2001 12/31/2002 12/31/2003

NON CURRENT ASSETS 0 0 0 SHAREHOLDERS' FUNDS 0 0 0
Intangible assets 0 0 0 Share capital & premium... 0 0 0
Fixed assets 0 0 0 Reserves & miscellaneous 0 0 0
Investments 0 0 0 Net profit 0 0 0
MINORITY INTERESTS 0 0 0
INVENTORIES 0 0 0 QUASI EQUITY 0 0 0
Provisions 0 0 0
RECEIVABLES 0 0 0 DEFERRED LIABILITIES 0 0 0
Trade debtors 0 0 0 DEFERRED TAXATION 0 0 0
Related companies 0 0 0 LONG TERM DEBT 0 0 0
Sundry 0 0 0 CURRENT LIABILITIES 0 0 0
EGP Trade creditors 0 0 0
CASH & EQUIV. 0 0 0 Short term debt 0 0 0
Sundry 0 0 0
MISCELLANEOUS 0 0 0 MISCELLANEOUS 0 0 0
ASSETS 0 0 0 LIABILITIES 0 0 0
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls Ratios-dev
SG entity NSGB Annual review credit file BHFM RAROC
Client 0 New customer Risk Rating
groupe 0
Activity Ponctual Request Relationship may be expanded
N° BPM Relationship to be maintained
Credit lines to be reduces
Currency: usd 000's
Previous Notified Comments
Requested Commitments
Nature of Credit authorizatio authorizati Validity Conditions (if ponctual request
authorizations as a12/12/04..
ns ons precise modification
Overdraft 0 0 0
Discount on commercial pa 0 0 0
0 0 0
Total Short Term Facilitie 0 0 0 0

Existing MLT loan 0 0 0
Requested MLT loan 0 0 0
Leasing Transaction 0 0 0
Total MLT Loans 0 0 0 0

LG 0 0 0
Other guarantees 0 0 0
Documentary credit 0 0 0
Total Contingent Commit 0 0 0 0

Total Authorization inclu 0 0 0 0
Curr
Total GROUP Authorization inc 0
Total GROUP Commitment 0
Main existing
securities
New securities
to be obtained
ONLY TO BE FILLED BY BHFM/RIS
The validation under concern autorisations enter in the column autorisations notified
Unreserved approval Refusal
Partial approval Follow-up / information request
Conditioned approval Risk rating
comments
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls synthesis file-dev
Sales and profitability EGP
Currency - thousands - 000 12/31/2001 12/31/2002 12/31/2003 growth N/N-1 growth N/N-2 Forecast
TURNOVER 0 0 0 ns ns
EBITDA 0 0 0 ns ns Turnover
EBITDA/Turnover ns ns ns 0
NET FINANCIAL COST(ch 0 0 0 ns ns
EBITDA/Net Financial Cost ns ns ns Results
NET RESULT 0 0 0 ns ns 0
CASH FLOW 0 0 0 ns ns
Relevant points to be explained
Financial structure EGP

Currency - thousands - 000 12/31/2001 12/31/2002 12/31/2003 growth N/N-1 growth N/N-2
TOTAL BALANCE SHEET 0 0 0 ns ns
TOT NON CURRENT ASSE 0 0 0 ns ns
STOCKHOLDERS' EQUIT 0 0 0 ns ns
% SE/TBS ns ns ns
Net Financial Debt 0 0 0 ns ns
Net Financial Debt/SE ns ns ns
Statistics over the past 12 months EGP

Currency - thousands - 0 mm-11 mm-10 mm-9 mm-8 mm-7 mm-6 mm-5 mm-4 mm-3 mm-2 mm-1 mm/aa Total Mean
Short Term Facilities 0 0 0 0 0 0 0 0 0 0 0 0 0
MLT Loans 0 0 0 0 0 0 0 0 0 0 0 0 0
Contingent Commitments 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL AMOUNT 0 0 0 0 0 0 0 0 0 0 0 0 0
Credit movement 0 0 0 0 0 0 0 0 0 0 0 0 0 0
credit credit
SG entity share movement
in % 0% 0%
General Comment
Sécrétariat banque RCC Risk Manager Dir. adjoint Directeur

(nom, signature) (nom, sign.) (name, sign.) (nom, (nom, sign.)
signature)
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls synthesis file-dev
NSGB
ASSETS 0 0 1M
in EUR - thousands - 000 ISO currency EGP G
12/31/2001 % 12/31/2002 % 12/31/2003 %
Local inflation rate :
last currency for all to avoid exchange effec 0.12853338 0.12853338 0.12853338
INTANGIBLE ASSETS 0 NA 0 NA 0 NA
Goodwill 0 NA 0 NA 0 NA
Trademarks 0 NA 0 NA 0 NA
Intangibles 0 NA 0 NA 0 NA
FIXED ASSETS 0 NA 0 NA 0 NA
Land & buildings 0 NA 0 NA 0 NA
Plant & machinery 0 NA 0 NA 0 NA
Other fixed assets 0 NA 0 NA 0 NA
Investments in progress 0 NA 0 NA 0 NA
- Depreciation 0 NA 0 NA 0 NA
OTHER LONG TERM ASSETS 0 NA 0 NA 0 NA

Related company invest. at equity 0 NA 0 NA 0 NA
Other investments 0 NA 0 NA 0 NA
Debtors 0 NA 0 NA 0 NA
TOTAL NON CURRENT ASSETS 0 NA 0 NA 0 NA
INVENTORIES 0 NA 0 NA 0 NA
Raw materials 0 NA 0 NA 0 NA
Work-in-progress 0 NA 0 NA 0 NA
Finished goods 0 NA 0 NA 0 NA
Goods in Transit 0 NA 0 NA 0 NA
RECEIVABLES 0 NA 0 NA 0 NA
Advances & prepayments 0 NA 0 NA 0 NA
Trade debtors (Net receivables) 0 NA 0 NA 0 NA
Owed by Group companies 0 NA 0 NA 0 NA
Other debtors (other current assets) 0 NA 0 NA 0 NA
CASH EQ. & CURRENT INVESTMEN 0 NA 0 NA 0 NA

Current investments 0 NA 0 NA 0 NA
Cash and equivalents 0 NA 0 NA 0 NA
PREPAID EXPENSES 0 NA 0 NA 0 NA
OTHER CURRENT ASSETS 0 NA 0 NA 0 NA
TOTAL CURRENT ASSETS 0 NA 0 NA 0 NA
TOTAL ASSETS 0 NA 0 NA 0 NA
WORKING CAPITAL 0 NA 0 NA 0 NA
WORKING CAPITAL REQUIREMENT 0 NA 0 NA 0 NA
NET CASH SURPLUS (DEFICIT) 0 NA 0 NA 0 NA
2/2/2005 Financial data & synthesis BHFM va 10-04 final 9-12.xls Assets-eur
LIABILITIES & SHAREHOLDERS' EQUITY 0 0 NSGB
in EUR - thousands - 000 0 EGP
0 12/31/2001 % 12/31/2002 % 12/31/2003 %
last currency for all to avoid exchange effect 0.12853338 0.12853338 0.12853338
SHAREHOLDERS' FUNDS 0 NA 0 NA 0 NA
Share capital & premium 0 NA 0 NA 0 NA
Revaluation reserve 0 NA 0 NA 0 NA
Other reserves 0 NA 0 NA 0 NA
Retained earnings 0 NA 0 NA 0 NA
* Non equity reserves 0 NA 0 NA 0 NA
Amounts under capital increase 0 NA 0 NA 0 NA
PROFIT / LOSS for the period 0 NA 0 NA 0 NA
MINORITY INTERESTS 0 NA 0 NA 0 NA
QUASI EQUITY 0 NA 0 NA 0 NA
- TREASURY STOCK 0 NA 0 NA 0 NA
EQUITY & MINORITY INTERESTS 0 NA 0 NA 0 NA
DEFERRED LIABILITIES 0 NA 0 NA 0 NA
DEFERRED TAXATION 0 NA 0 NA 0 NA
LONG TERM LIABILITIES 0 NA 0 NA 0 NA
Bonds 0 NA 0 NA 0 NA
Bank loans LT DEBT 0 NA 0 NA 0 NA
Intercompany debt 0 NA 0 NA 0 NA
Other creditors & liabilities(> 1 year) 0 NA 0 NA 0 NA
TOTAL LONG TERM RESOURCES 0 NA 0 NA 0 NA

Provisions (Other than Doubtful Accounts) 0 NA 0 NA 0 NA
OPERATING LIABILITIES 0 NA 0 NA 0 NA
Customers' advances & prepayments 0 NA 0 NA 0 NA
Trade creditors Accounts payable 0 NA 0 NA 0 NA
Other creditors (other current liabilities) 0 NA 0 NA 0 NA
SHORT TERM DEBT 0 NA 0 NA 0 NA

Long term debt (due whithin 1 year) 0 NA 0 NA 0 NA
Bank loans & overdrafts 0 NA 0 NA 0 NA
Due to Group companies 0 NA 0 NA 0 NA
UNREALIZED INCOME 0 NA 0 NA 0 NA
C OTHER CURRENT LIABILITIES 0 NA 0 NA 0 NA
TOTAL LIABILITIES & EQUITY 0 NA 0 NA 0 NA
CONTINGENT LIABILITIES 0 NA 0 NA 0 NA
Guarantees 0 0 0
Other commitments 0 0 0
Leasing 0 0 0
NET WORTH 0 0 0
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls Liabilities-eur
NSGB
PROFIT & LOSS ACCOUNT 0 0
in EUR - thousands - 000 EGP
12/31/2001 % 12/31/2002 % % 12/31/2003 % %
Number of months 12 struct. 12 struct. var./ n-1 12 struct. var./ n-1
last currency for all to avoid exchange effec 0.12853338 0.12853338 0.12853338
TURNOVER (SALES) 0 NA 0 NA 0 NA
- Cost of goods sold 0 NA 0 NA 0 NA
GROSS PROFIT 0 NA 0 NA 0 NA
- Selling, adm. & general expenses 0 NA 0 NA 0 NA
+ Associated company profits 0 NA 0 NA 0 NA
+ Other operating revenue 0 NA 0 NA 0 NA
- Taxes (other than income taxes) 0 NA 0 NA 0 NA
EBITDA 0 NA 0 NA 0 NA
- Depreciation & Amortisation 0 NA 0 NA 0 NA
- Non operating expenses 0 NA 0 NA 0 NA
+ Non operating revenues 0 NA 0 NA 0 NA
- Provisions 0 NA 0 NA 0 NA
EBIT 0 NA 0 NA 0 NA
+ Interest income 0 NA 0 NA 0 NA
- Interest expense 0 NA 0 NA 0 NA
PROFIT BEFORE TAXES 0 NA 0 NA 0 NA

+ Extraordinary items 0 NA 0 NA 0 NA
- Taxation 0 NA 0 NA 0 NA
NET PROFIT 0 NA 0 NA 0 NA
+/- Profit attributable to minorities 0 NA 0 NA 0 NA
PROFIT attributable to shareholders 0 NA 0 NA 0 NA
GROSS CASHFLOW 0 NA 0 NA 0 NA
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls Profit-eur
RATIOS IN EUR 0 0 NSGB
in EUR - thousands - 000 0 EUR
last currency for all to avoid exchange effect 0.12853338 0.12853338 0.128533383
12/31/2001 12/31/2002 12/31/2003
N/ N-1 N/N-2
Turnover 0 0 0 ns ns
EBITDA 0 0 0 ns ns
EBITDA/Turnover ns ns ns
Net Financial Costs 0 0 0 ns ns
EBTIDA/Net Financial costs ns ns ns
Net Profit 0 0 0 ns ns
Gross Cash Flow 0 0 0 ns ns
ROS #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
ROE #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
12/31/2001 12/31/2002 12/31/2003
N/ N-1 N/N-2
TOTAL ASSETS 0 0 0 ns ns
EQUITY 0 0 0 ns ns
EQUITY/ TOT. ASSETS ns ns ns
NET FINANCIAL DEBT 0 0 0 ns ns
NET FIN DEBT/EQUITY ns ns ns
TOTAL DEBT / NET WORTH #DIV/0! #DIV/0! #DIV/0!
TOTAL DEBT / EQUITY #DIV/0! #DIV/0! #DIV/0!
LMTL / NET WORTH #DIV/0! #DIV/0! #DIV/0!
BANK GEARING #DIV/0! #DIV/0! #DIV/0!
NET DEBT / EQUITY #DIV/0! #DIV/0! #DIV/0!
NET DEBT / NET WORTH #DIV/0! #DIV/0! #DIV/0!
(days of turnover)
12/31/2001 12/31/2002 12/31/2003
Inventories DOH #DIV/0! #DIV/0! #DIV/0!
Trade debtors / Turn. #DIV/0! #DIV/0! #DIV/0!
Invent.+ receiv. / Turn. #DIV/0! #DIV/0! #DIV/0!
W/C requirement / Turn. #DIV/0! #DIV/0! #DIV/0!
S/T debts / Turnover #DIV/0! #DIV/0! #DIV/0!
Trade Creditors DOH #DIV/0! #DIV/0! #DIV/0!
Liquidity Ratios:
12/31/2001 12/31/2002 12/31/2003
Current ratio #DIV/0! #DIV/0! #DIV/0!
Quick ratio #DIV/0! #DIV/0! #DIV/0!
Cash flow:
12/31/2001 12/31/2002 12/31/2003
Cash flow / CPLTD #DIV/0! #DIV/0! #DIV/0!
Cash flow / LTD #DIV/0! #DIV/0! #DIV/0!
Cash flow / LTL #DIV/0! #DIV/0! #DIV/0!
Cash flow / Net fixed assets #DIV/0! #DIV/0! #DIV/0!
12/31/2001 12/31/2002 12/31/2003 12/31/2001 12/31/2002 12/31/2003

NON CURRENT ASSETS 0 0 0 SHAREHOLDERS' FUNDS 0 0 0
Intangible assets 0 0 0 Share capital & premium... 0 0 0
Fixed assets 0 0 0 Reserves & miscellaneous 0 0 0
Investments 0 0 0 Net profit 0 0 0
MINORITY INTERESTS 0 0 0
INVENTORIES 0 0 0 QUASI EQUITY 0 0 0
Provisions 0 0 0
RECEIVABLES 0 0 0 DEFERRED LIABILITIES 0 0 0
Trade debtors 0 0 0 DEFERRED TAXATION 0 0 0
Related companies 0 0 0 LONG TERM DEBT 0 0 0
Sundry 0 0 0 CURRENT LIABILITIES 0 0 0
EGP Trade creditors 0 0 0
CASH & EQUIV. 0 0 0 Short term debt 0 0 0
Sundry 0 0 0
MISCELLANEOUS 0 0 0 MISCELLANEOUS 0 0 0
ASSETS 0 0 0 LIABILITIES 0 0 0
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls Ratios-eur
SG entity NSGB Annual review credit file 0 BHFM RAROC
Client 0 New customer 0 Risk Rating 0 0
Group 0
Activity 0 Ponctual Request 0 Relationship may be expanded 0
N° BPM 0 Relationship to be maintained 0
Today's Credit lines to be reduces 0
Thousands - 000's EUR Exchange rate: 0.0000 0.1285334
Previous Requested Comments
Notified Commitments
Nature of Credit authorization authorizatio Validity Conditions (if ponctual request precise
authorizations as a12/12/04..
s ns modification of annual review :
Overdraft 0.00 0.00 0.00 Jan/00 0.00 0 0
Discount on commercial paper 0.00 0.00 0.00 Jan/00 0.00 0
0 0.00 0.00 0.00 Jan/00 0.00 0
0 0.00 0.00 0.00 0.00 0
0 0.00 0.00 0.00 0.00 0
Total Short Term Facilities 0.00 0.00 0.00 0.00
Existing MLT loan 0.00 0.00 0.00 Jan/00 0.00 0
Requested MLT loan 0.00 0.00 0.00 Jan/00 0.00 0
Leasing Transaction 0.00 0.00 0.00 Jan/00 0.00 0
0 0.00 0.00 0.00 0 0.00 0
0 0.00 0.00 0.00 0 0.00 0
Total MLT Loans 0.00 0.00 0.00 0.00
LG 0.00 0.00 0.00 Jan/00 0.00 0
Other guarantees 0.00 0.00 0.00 Jan/00 0.00 0
Documentary credit 0.00 0.00 0.00 Jan/00 0.00 0
0 0.00 0.00 0.00 0 0.00 0
0 0.00 0.00 0.00 0 0.00 0
0 0.00 0.00 0.00 0 0.00 0
Total Contingent Commitments 0.00 0.00 0.00 0.00
Total Authorization including ceili 0.00 0.00 0.00 0.00
EUR
Total GROUP Authorization including c 0.00
Total GROUP Commitment 0.00
Main existing 0
securities 0
0
New securities 0
to be obtained 0
0
ONLY TO BE FILLED BY BHFM/RIS
The validation under concern autorisations enter in the column autorisations notified
Unreserved approval 0 Refusal 0

Partial approval 0 Follow-up / information request 0
Conditioned approval 0 Risk rating 0
comments
0
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls synthesis file-eur
Sales and profitability EUR
Thousands - 000's 12/31/2001 12/31/2002 12/31/2003 growth N/N-1 growth N/N-2 Forecast
TURNOVER 0 0 0 ns ns
EBITDA 0 0 0 ns ns Turnover
EBITDA/Turnover ns ns ns #VALUE! #VALUE! 0.00
T FINANCIAL COST(charge +, pr 0 0 0 ns ns
EBITDA/Net Financial Cost ns ns ns #VALUE! #VALUE! Results
NET RESULT 0 0 0 ns ns 0.00
CASH FLOW 0 0 0 ns ns
Financial structure EUR

Thousands - 000's 12/31/2001 12/31/2002 12/31/2003 growth N/N-1 growth N/N-2
TOTAL BALANCE SHEET (TBS) 0 0 0 ns ns
STOCKHOLDERS' EQUITY (SE) 0 0 0 ns ns
% SE/TBS ns ns ns
Net Financial Debt 0 0 0 ns ns
Net Financial Debt/SE ns ns ns
Statistics over the past 12 months EUR

Currency - thousands - 000 mm-11 mm-10 mm-9 mm-8 mm-7 mm-6 mm-5 mm-4 mm-3 mm-2 mm-1 mm/aa Total Mean
Short Term Facilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
MLT Loans 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contingent Commitments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL AMOUNT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit movement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SG entity share credit redit movemen
in % 0% 0%
General Comment
0
Sécrétariat banque RCC Risk Dir. adjoint Directeur

(nom, signature) (nom, sign.) Manager (nom, (nom, sign.)
(name, sign.) signature)
0 0 0 0 0 0 0 0
2/2/2005 9:57 AM Financial data & synthesis BHFM va 10-04 final 9-12.xls synthesis file-eur
ANNEXE 1 - APPENDIX 1 33
11. Currency fixing - Cours de change
CONVERSION EN EUR
Code ISO Currency country 12/31/2001 12/31/2002 12/31/2003

ARS Peso Argentine 1.13469 0.28380 0.27000 ARS
ATS Schilling Autrichien 0.07267 0.07267 0.07267 ATS
AUD Dollar Australien 0.57870 0.53891 0.59517 AUD
BEF Franc Belge 0.02479 0.02479 0.02479 BEF
BGN LEV Bulgarie 0.51380 0.51161 0.51133 BGN
BRL Real Bresil 0.48888 0.26937 0.27288 BRL
CAD Dollar Canada 0.71038 0.60423 0.61599 CAD
CHF Franc Suisse 0.67435 0.68852 0.64189 CHF
CLP Peso Chili 0.00209 0.00132 0.00134 CLP
COP Peso Colombie 0.00056 0.00033 0.00028 COP
CZK Couronne Tchequie 0.03129 0.03167 0.03085 CZK
DEM Deutsche Mark Allemagne 0.51129 0.51129 0.51129 DEM
DZD Dinar Algérien Algérie 0.01236 0.01131 DZD
EGP Livre Egypte 0.24827 0.20640 0.12853 EGP
ESP Peseta Espagne 0.00601 0.00601 0.00601 ESP
EUR Euro Europe 1.00000 1.00000 1.00000 EUR
FRF Franc France 0.15245 0.15245 0.15245 FRF
GBP Livre sterling Royaume uni 1.64339 1.53728 1.41884 GBP
GHC Cedi Ghana 0.00012 0.00010 GHC
GNF Franc Guinéen Guinée 0.00057 0.00051 0.00042 GNF
GRD Drachme Grece 0.00293 0.00293 0.00293 GRD
HKD Dollar Hong kong 0.14551 0.12228 0.10199 HKD
HRK Kuna Croatie 0.13581 0.13301 0.13086 HRK
HUF FORINT HONGRIE 0.00408 0.00423 0.00381 HUF
IDR Roupie Indonésie 0.00011 0.00011 0.00009 IDR
INR Roupie Inde 0.02357 0.01988 0.01740 INR
ITL Lire Italie 0.00052 0.00052 0.00052 ITL
JPY Yen Japon 0.00867 0.00804 0.00740 JPY
KRW Won Corée du sud 0.00086 0.00080 0.00066 KRW
LBP Livre Libanaise Liban 0.00075 0.00063 0.00052 LBP
LKR Roupie Sri lanka 0.01206 0.01042 0.00866 LKR
LUF Franc Luxembourg 0.02479 0.02479 0.02479 LUF
MAD dinar Maroc 0.09789 0.09368 0.09029 MAD
MGF Franc Madagascar 0.00018 0.00016 0.00014 MGF
MXN Peso Mexique 0.12447 0.09195 0.07053 MXN
MYR Ringit Malaisie 0.29928 0.25097 0.20836 MYR
NLG Florin Pays bas 0.45378 0.45378 0.45378 NLG
NOK Couronne Norvege 0.12701 0.12701 0.11885 NOK
NZD New Zealand DollaNle Zélande 0.50063 0.51964 NZD
PKR Roupie Pakistan 0.01868 0.01637 0.01383 PKR
PLN Zloty Pologne 0.28610 0.24869 0.21268 PLN
ROL LEU LEU 0.00004 0.00003 0.00002 ROL
RUR NOUVEAU ROUBRUSSIE 0.03721 0.00003 0.00003 RUR
SAR Arabie Saoudite 0.31443 0.25425 0.21113 SAR
SEK Couronne Suede 0.10751 0.10926 0.11013 SEK
SGD dollar Singapour 0.61327 0.54948 0.46620 SGD
SIT Tolar Slovenie 0.00457 0.00434 0.00422 SIT
THB Bath Thailande 0.02572 0.02212 0.01999 THB
TND Dinar Tunisien Tunisie 0.71322 0.65295 TND
TRL Livre TURQUE Istanbul 0.00000 0.00000 0.00000 TRL
TWD Dollar de Ta¨wan Taïwan 0.03239 0.02753 0.02333 TWD
UAH Hryvnia 0.21229 0.17882 0.14849 UAH
USD dollar USA 1.13469 0.95356 0.79177 USD
XOF FRANC CFA BCEAFRIQUE 0.00152 0.00152 0.00152 XOF
XPF Franc Pacifique Pacifique 0.00838 0.00838 0.00838 XPF
YUM nouveau dinar Belgrade 0.01707 0.01660 0.01535 YUM
ZAR Rand Afrique du Sud 0.09588 0.11100 0.12008 ZAR
Zdevisetest Zdevisetest Zdevisetest 0.10000 0.10000 0.10000 Zdevisetest
MISE A JOUR DES TAUX DE CHANGE FOURNI PAR RISQ/GEM VIA NIVEAU 2. CHANGE PAR RAPPORT A L'EUR
Les engagements et les provisions doivent être calculés sur un fixing spot
Les dotations, reprises, pertes et récupérations doivent être calculée au taux moyen
2/2/2005 Financial data & synthesis BHFM va 10-04 final 9-12.xls currency
Presentation of Credit Facilities
Date : dd/ mm / year
To : Sub Credit / Credit / Executive Committee
From : Branch name
Client name:
I - Executive Summary:
II – Description of Facilities Presented for approval:
Cairo
dd/ mm / year
on:
Branch Credit Regional Credit Sub Credit Credit Executive
To :
Committee Committee Committee Committee Committee
From : Branch Name :
Account
Client full name : Number
DAI number
Client short name : Segment code
Group name : Group code
Existing BHFM Risk Rating Proposed BHFM Risk rating

Existing STARWEB Risk Rating Proposed STARWEB Risk Rating
Economic Sector of activity: Economic Sector Code:
Legal Status:
Subject : New Simple Renewal Increase / Decrease
A. Description of Short Term Facilities Presented for Approval

Fig. in 000's
Type of Facilities Former Validit Rate/ Reques Validit Rate/ O/S
Existin y margin ted y margin
g
(Credit Line Name) : Cry --- mm/yy Cry --- mm/yy
Purpose: - -
Interest rate: % %
--% compound interest per
A. (Funded case)
annum
Commission: % %
Highest Debit Balance (flat).
Specific Collateral:
a) Security:
Type: Amount: % %
Coverage margin:
b) Support:
Type: Amount % %
Coverage margin:
(Credit Line Name) : Cry --- mm/yy Cry --- mm/yy
Purpose: - -
-Type of Letter of Guarantee
or Type of Documentary
credit
B. (Un-Funded case)
% %
Cash cover margin
Duration:
Commission: % %
Specific Collateral:
a) Security:
Type: Amount:
Coverage margin: % %
b) Support:
Type: Amount
Coverage margin: % %
Initial:
Client Name: Short name.
Continue: A. Description of Facilities Presented for Approval
Fig. in 000's
Type of Facilities Former Validity Rate/ Reques Validit Rate/ O/S
Existing margin ted y margin
Total in each currency (I)
Total in EGP (I)
Documentary Credit and Post
finance ceiling in EGP (A+B)
Ceiling
B. Term Loan / leasing limit submitted for approval:*

Fig. in 000's
Type
Amount
Purpose
Tenor
Availability & Draw
down period
Grace Period
First rental (leasing only)
Repayment
Interest
Commission
Other Comm./fees
Delay interest
Security
Support
Conditions Precedent
Covenants
Events of default
* In case of syndication or complex structure loans, a detailed term sheet is to be put after the
Documentation & before the signature page.
C. Existing Facilities yet to mature (short description of the terms, condition and specific collateral
of each of the following should be mentioned):
Fig. in 000's
Type of Facilities Limit Validity Commitment
A Term Loan
B Special Transaction
C Curve out to “ client name and no.”
D Curve out from “client name and no.”
Total in currency (III)
Total in EGP (III)
N.B.: the elaboration of “Total in each currency” and “Total in EGP” only in case there are facilities granted in more
than one currency.
Foreign Exchange rate : EGP/cry
Client Name: Short name.
D. Total client’s Facilities :

Fig. in 000's
Type of Facilities Former existing Requested
Total Facilities (I) + (II) + (III) in each currency
Total Facilities (I) + (II) + (III) in EGP
Overall ceiling of client’s Facilities.
E. Related Facilities:
Fig. in 000's
Client short Type of Authorized Commitment Validit Collateral/
name/ Facilities Limit y Securities
Account No.: Or Support
(* * * * * * * )
Total Related
Facilities
F. Ceiling of the Group:

Fig. in 000's
Type of Facilities Former / Existing Requested
Total Facilities (III) + (IV) in each currency
Total Facilities (III) + (IV) in EGP
Overall ceiling of the Group .
Collateral/Securities Covering Overall Commitments:

Type Amount Margin
Support for Overall Commitments:

Type Amount Margin
Documentation:
Covenant:
Other conditions:
Client Name: Short name. Credit Presentation:
CREDIT APPLICATION PRESENTED TO BRANCH CREDIT COMMITTEE:
Branch level: Recommended By:

Prepared By: Reviewed By
Name: Name:
Title: Title:
Date: Date:
Signature: Signature:
Branch Credit Committee Remarks:
MR. DATE: SIGNATURE

BRANCH CREDIT MANAGER
MR. DATE: SIGNATURE
DEPUTY BRANCH MANAGER
MR. DATE: SIGNATURE
BRANCH MANAGER
CREDIT APPLICATION PRESENTED TO REGIONAL CREDIT COMMITTEE:

Prepared By: Reviewed By Branch Credit Manager
Name: Name: Name:
Title: Title: Title:
Date: Date: Date:
Signature: Signature: Signature:
Regional Credit Committee Remarks:
MR. DATE: SIGNATURE

BRANCH MANAGER
MR. DATE: SIGNATURE
REGIONAL GENERAL MANAGER
CREDIT APPLICATION PRESENTED TO HIGHER DESCRETIONARY LEVEL:

Prepared By: Reviewed By: Branch Manager:
Name: Name: Name:
Title: Title: Title:
Date: Date: Date:
Signature: Signature: Signature:
SOGELEASE OPINION:
MR. PATRICK LAURENT DATE: SIGNATURE

SOGELEASE MANAGING DIRECTOR
CREDIT APPLICATION PRESENTED TO SUB CREDIT COMMITTEE:
Sub Credit Committee Remarks:
SUB CREDIT COMMITTEE RECOMMENDATION APPROVAL
MR. TAREK FAYED DATE: SIGNATURE

DEPUTY GENERAL MANAGER
MR. YVES RIOU DATE: SIGNATURE
DEPUTY GENERAL MANAGER – RISKS MANAGER
Client Name: Credit Presentation Reference number:
CREDIT APPLICATION PRESENTED TO CREDIT COMMITTEE:
Credit Committee Remarks:
CREDIT COMMITTEE RECOMMENDATION APPROVAL

DEPUTY GENERAL MANAGER– RISKS MANAGER
MR. MOHAMED EL DIB DATE: SIGNATURE
GENERAL MANAGER – BOARD MEMBER
MR. GUY POUPET DATE: SIGNATURE
NSGB MANAGING DIRECTOR
CREDIT APPLICATION PRESENTED TO EXECUTIVE COMMITTEE:
Credit Committee Remarks:
CREDIT COMMITTEE RECOMMENDATION:

DEPUTY GENERAL MANAGER– RISKS MANAGER
MR. MOHAMED EL DIB DATE: SIGNATURE
GENERAL MANAGER – BOARD MEMBER
MR. GUY POUPET DATE: SIGNATURE
NSGB MANAGING DIRECTOR
EXECUTIVE COMMITTEE APPROVAL:

DATE: SIGNATURE
MR. AHMED DIAA DATE: SIGNATURE
EXECUTIVE COMMITTEE MEMBER
MR. JEAN LOUIS MATTEI ( SOCIETE GENERALE ) APPROVAL FAX/E-MAIL DATE:
EXECUTIVE COMMITTEE VICE CHAIRMAN
MR. MOHAMED MADBOULY DATE: SIGNATURE
EXECUTIVE COMMITTEE CHAIRMAN
III. Financial analysis:
In this section the aim is to clarify the reasons behind the changes in the figures (not to
just describe the changes in the figures) i.e. avoid elevator analysis.
IV. Justification for the requested facilities:
V – Relationship of the Company with NSGB:

1- General view of the Company’s relationship with Banks :
List all Banks known, their facilities and areas of business with the Company.
Comment on the CBE CAP latest known figures and their evolution, trend.
2- Relationship with NSGB
Add information with statistics on last three or four years on:
(Fig. in 000’s)
2001 2002 2003 2004
Credit movement
As a % of sales
Debit movement
Interest collected
C.P. received
C.P. collected
Rejection ratio
L/Cs opened
CAD
L/Gs issued
FCY obtained from NSGB
FCY sold to NSGB
• Leasing contracts and prospects if any

• Individual banking relationship: also try to give some estimates of the
profitability for NSGB of this IB relationship created as a “CorpStaff” product.
• Life Insurance Company : same as for IB.
3- Comment as and if necessary on the ROE (historical and forecast)
4– Recommendations: Comment on those areas (if any) where NSGB should make
efforts to expand the relationship with the Company.
Validation Process of NSGB client ratings :
rules & main principles
VALIDATION PROCESS
1 – Phase 1 / Client Rating: users profile
In order to respect the validation process, relationship managers who “build” the rating (by describing the
client and by answering questions) will have to make sure that they use the appropriate profile before
beginning their work
Except for a few exceptional cases, they will have 4 profiles at their disposal as follows:
For Multinational counterparts:
- rater EURO/RMU: client of which EURO/RMU is the primary client

responsibility unit.
- rater DIST/CLT: client of which DIST/CLT is the primary client responsibility
unit.
- Other profiles: As specified by the MRU unit.
For Local counterparts:
- rater BHFM/BAN/EGY: client of which BHFM is the primary client

responsibility unit; within the limit the Credit committee or Sub- Credit
Committee).
- rater BHFM: client of which BHFM is the primary client responsibility unit;
within the limit of the Executive Committee.
> Remark 1: in order to spare trouble, before working on the draft, the raters can ask their risk
department about the appropriate profile;
> Remark 2: if the client to rate is a subsidiary of a local company followed by the CRU the rater will
have to coordinate with the CRU whether the rating will done by him or the CRU, & to ensure that its
parent is already rated in Starweb.
> Remark 3: if the client to rate is a subsidiary of a local company not followed by the CRU the rater will
have to ensure that its parent is already rated in Starweb (if it is not the case he will have either to rate
himself this parent or in case the group is shared between two or more branches to coordinate with the
other branch/s & the Risks Dept.).
> Remark 4: if the client to rate is a subsidiary of a multinational company, the rater will have to
coordinate with the MRU whether the rating will be done by him or the MRU, in case the rating will be
done by the branch, the MRU will provide the branch with the coverage (desk) following this client to
enable choosing the appropriate rater profile & will also provide the exact name of the parent company to
assign while rating this client.
> Remark 5: If the client is followed by the CRU or MRU, while the rating will done by the branch, the
credit manager will have to prepare the rating in full coordination with the MRU (or CRU) and
obtain their approval prior to transmitting to the Risks Dept..
2 – Phase 2 / Transmission of the draft (validation process)
Some structure elements (E/S) have been created in Starweb to make easier the validation process:
- BHFM/BAN/EGY/OFF: Credit Officers

- BFHM/BAN/EGY/MAN: Credit Managers
- BHFM/BAN/EGY/RIS : Risk Management
They will be used for transmissions (“Transmit” button).

2.1 - Client under the limit of the Credit Committee:
Once the rating work is done, the Credit officer (with a profile Rater BHFM/BAN/EGY) will transmit this
rating to the Credit Manager in his branch (using the “Transmit” button, and choosing
BHFM/BAN/EGY/MAN as E/S).
Then the Credit Manager (Rater BHFM/BAN/EGY) has three possibilities:
- [1] he agrees with the rating Æ in this case he proposes the rating (by clicking on
the “Propose” button) to the Risk Management.
- [2] he does not agree with the rating,

• he requests the Credit Officer responsible for the rating to make some
modifications and to submit a new draft
• he modifies the draft and proposes it directly to the Risk Management.
Finally the NSGB Risk Department (Valider BHFM/BAN/EGY) has four possibilities:
- [1] they agree with the rating Æ in this case they validate the rating (by clicking
on the “Validate” button)
- [2] they do not agree with the rating,

• they can refuse it and give some explanations (“Refuse” button) Æ in
this case the credit manager has to take into account the explanations and
propose a new draft
• they request the credit manager responsible for the rating to make some
modifications and to propose a new draft, then they can validate it (or
refuse it again)
• they modify directly the proposed rating and validate it.
2.2 – Client above the limit of the Credit Committee:
a) BHFM Clients
Once the rating work is done, the Credit officer (Rater BHFM) will transmit this rating to the Credit
Manager (“Transmit” button to BHFM/BAN/EGY/MAN).
Then the Credit Manager (Rater BHFM) has three possibilities:
- [1] he agrees with the rating Æ in this case he transmits the rating (“Transmit”
button) to the Risk Management (BHFM/BAN/EGY/RIS).

• he modifies the draft and transmits directly to the Risk Management.
Finally, the NSGB Risk Department (Rater BHFM) has also three possibilities:
- [1] they agree with the rating Æ in this case they propose the rating (“Propose”
button) to BHFM/RGE/RIS (Paris).

modifications and to submit a new draft, then they can propose it to
Paris.
• they modify the draft and propose it directly to BHFM/RGE/RIS (Paris).
b) Others: example of EURO/RMU clients
(the process would be the same with DIST/CLT clients: replace EURO/RMU by DIST/CLT)
Once the rating work is done, the Credit Officer (Rater EURO/RMU) will transmit this rating to the
Credit Manager (“Transmit” button to BHFM/BAN/EGY/MAN).
Then the Credit Manager (Rater EURO/RMU) has three possibilities:
- [1] he agrees with the rating Æ in this case he transmits the rating (“Transmit”
button) to the Risk Management (BHFM/BAN/EGY/RIS).

• he modifies the draft and transmits it directly to the Risk Management.
Finally, the NSGB Risk Department (Rater EURO/RMU) has also three possibilities:
- [1] they agree with the rating Æ in this case they transmit the rating (“Transmit”
button) to EURO/RMU (Paris).

• they modify the draft and transmit it directly to EURO/RMU (Paris).
Regarding clients followed by the MRU or the CRU where the rating will be done by the branch, -
for the time being- the credit manager will fully coordinate with the CRU or MRU throughout the
rating process & must obtain their approval prior to transmitting to risk dept.
(BHFM/BAN/EGY/RIS), this is highly vital due to the special nature of these clients where the final
rating of these client can be significantly affected by factors such as:
⇒ Determination of the exact parent name especially for the Multinationals (for example it is very
common to many arms to hold the group’s various subsidiaries & it is crucial to determine the exact
arm holding our concerned subsidiary).
⇒ Evaluating the strength/wording of the guarantee/letter of intent provided.
⇒ Judging the history of the parent in supporting its affiliates.
⇒ Others …….
Validation
ValidationProcess
Processof
ofclient
clientratings
ratings::
clients
clientsunder
underNSGB
NSGBlimitlimit
E/S = Structure Elements
Validation
“Validate”
Credit Credit
NSGB Risk
Officer “Transmit” Manager “Propose”
Management
(rater BHFM/BAN/EGY) (rater BHFM/BAN/EGY) (valider BHFM/BAN/EGY)
1 – if he agrees with the rating: « Propose »

1 – Draft in Starweb
to Risk Management
2 – Transmits the draft to the Credit
2 – if not :
Manager (« transmit » button to
2.1 - transmits to the credit officer for
« BHFM/BAN/EGY/MAN»)
modifications (E/S =BHFM/BAN/EGY/OFF)
Or
2.2 – direct modification of the draft and
proposition to Risk Management
Validation
ValidationProcess
Processof
of client
clientratings
ratings::
BHFM
BHFM(Paris)
(Paris)clients
clients
Validation
“Validate”
Credit Credit NSGB Risk

“Transmit” “Transmit” “Propose” BHFM/RGE/RIS
Officer Manager Management (valider BHFM)
(rater BHFM) (rater BHFM)
(rater BHFM)
1 – Draft in Starweb 1 – if he agrees with the rating: «Transmit » to Risk 1 – if agreement with the rating: “Propose” to
Management (E/S BHFM/BAN/EGY/RIS) BHFM (Paris)
2 – Transmits the draft to the Credit
Manager (« transmit » button to 2 – if not : 2 – if not :
« BHFM/BAN/EGY/MAN») 2.1 - transmits to the credit officer for modifications 2.1 – “transmit” to the credit manager for
(E/S BHFM/BAN/EGY/OFF) modifications (E/S BHFM/BAN/EGY/MAN)
Or Or
2.2 – direct modification of the draft and 2.2 – direct modification of the draft and
transmission to BHFM/BAN/EGY/RIS proposition to BHFM
Validation
ValidationProcess
Processof
of client
clientratings
ratings::
EURO/RMU
EURO/RMUclients
clients
Validation
“Validate”
Credit Credit NSGB Risk

“Transmit” “Transmit” “Transmit” EURO/RMU “Propose” RISQ/CIB
Officer Manager Management (rater EURO/RMU) (valider EURO/RMU)
(rater EURO/RMU) (rater EURO/RMU)
(rater EURO/RMU)
1 – Draft in Starweb 1 – if he agrees with the rating: «Transmit » to 1 – if agreement with the rating: «Transmit » to
Risk Management (E/S BHFM/BAN/EGY/RIS) EURO/RMU
2 – Transmits the draft to the
credit manager (« transmit » button 2 – if not : 2 – if not :
to « BHFM/BAN/EGY/MAN») 2.1 - transmits to the credit officer for 2.1 – “transmit” to the Credit Manager manager
modifications (E/S BHFM/BAN/EGY/OFF) for modifications (E/S BHFM/BAN/EGY/MAN)
Or Or
2.2 – direct modification of the draft and 2.2 – direct modification of the draft and
transmission to Risk Management transmission to EURO/RMU
NB : the scheme would be the same with DIST/CLT clients (replace EURO/RMU by DIST/CLT and RISQ/CIB by RISQ/DET)
The RAROC Methodology
1
The
The RAROC
RAROC concept
concept
RAROC = Risk Adjusted Return On Capital
Revenues – Expected Loss Revenues

RAROC = ≠ ROE =
Economic capital Regulatory capital
• Introduces expected credit losses into the equation
• Capital is adjusted at the importance of the losses
Economic capital=
Equity amounts set by the bank to cover exceptional risk (i.e. beyond average expected losses)
Regulatory capital=
minimum level of equity required from banks to maintain the stability of the financial system
2
Economic Capital
Economic capital depends on the volatility of credit losses.
It corresponds to the loss (exceptional risk) beyond the average loss (expected loss).
Exceptional Loss =>

Loss Economic Capital
(bp)
Average
Expected Loss
Year
3
Examples
Example of an activity “consuming” little economic capital
(low volatility of losses)
Exceptional loss =>

Economic capital
Loss
(bp)
Average
Expected Loss
Years
4
Examples
Example of an activity “consuming” much economic capital
(high volatility of losses)
Exceptional loss =>

Economic capital
Loss
(bp)
Average
Expected Loss
Years
5
Expected profitability : RAROC versus ROE
Expected profitability: the risk attached to the transaction is integrated in the RAROC
methodology (as opposed to the ROE approach)
Transactions Expected profitability
Client 1 = Air France of transactions

Type = Term-Loan, 3 years Revenues 1 Av. Loss 1
Amount = 100
Guarantee = 100 (plane)
Revenues = PR+1% Regulatory Cap. 1 Econ. Cap. 1
ROE 1 = ROE 2
RAROC 1 ≠ RAROC 2
Client 2 = Local Restaurant Revenues 2
Av. Loss 2
Nature = Term-Loan, 3 years = Revenues 1
NB:
Amount = 100 RAROC = [Revenues- Av. Loss] /
[Econ. Cap.]
Guarantee = 0 Regulatory Cap. 2 ROE = [Revenues] / [Regulatory Cap.]
Econ. Cap. 2
= Regulatory Cap.1 6
Revenues = PR+1%
Objectives
Objectives of
of the
the RAROC
RAROC methodology
methodology
Through analytical methods of quantifying the risk and the risk
adjusted profitability:
provide support for structuring, pricing and decision making on

credit facilities
enhance our portfolio management (active management,

provisions, allocation of capital…)
make the best possible use of the reform of the prudential ratio
(effective in 2006)
7
The
The RAROC
RAROC concept
concept
SG RAROC is based on 4 fundamental building blocks:
Expression of Expression of the Expression of the

Language to the obligor’s average cost of exceptional risk
express the risk risk of default risk of the of the transaction
transaction
Rating Obligor Facility Economic

scale rating Rating capital
RAROC
8
SG
SG Rating
Rating scale
scale (1/2)
(1/2)
SG rating scale is based on a simple concept: expected loss SG Moody’s S&P Expected
(or average cost of risk) which provides a quantitative Rating Rating Rating loss (bp)
measure of risk. 1 Aaa AAA 0.0
[To each rating is associated an expected loss corresponding to the 2+ Aa1 AA+ 0.1
average of the observed losses over a cycle for a portfolio similar to 2 Aa2 AA 0.1
the one described]. 2- Aa3 AA- 0.4
3+ A1 A+ 1
3 A2 A 3
Expected Probability Loss in case
= X 3- A3 A- 4
loss of default of Default
4+ Baa1 BBB+ 6
4 Baa2 BBB 9
4- Baa3 BBB- 17
5+ Ba1 BB+ 30
Default risk
Credit risk 5 Ba2 BB 55
of the counterpart 5- Ba3 BB- 90
• Exposure at default
6+ B1 B+ 140
• Recovery
6 B2 B 220
6- B3 B- 350
7+ Caa CCC 550
7 Ca CC 870
⌦ As a convention: obligor rating = expected loss for one- 7- C C 1375
year unsecured credit 8/9 D D 9 NA
10 D D NA
SG
SG Rating
Rating Scale
Scale (2/2)
(2/2)
Ratings = consistent and objectives measures
Comparisons – in terms of risks – are made possible all over SG Group’s

portfolio [for example between a BHFM client or portfolio, and a NY client or portfolio]
Companies and transactions are rated on the same scale
a rating “5” corresponds to an expected loss of 55 bp :
⇒ For an Obligor : the expected loss on a 1-year bullet unsecured facility granted to
this type of counterpart
⇒ For a Facility : the expected loss on the transaction as described, for a given type
of counterpart. The expected loss is taken into account in the calculation of the
Raroc ratio
10
Obligor Rating Calculation
Internal models, external models and the expertise of the relationship manager are used to
determine the rating of an obligor
Financial model not available for BHFM
Internal rating
Stand Parent Country SG Financial

alone risk Support risk
SG Economic
Parent support model Country-risk sensitivity External rating

Economic rating : model
specific model for S & P / Moody ’s / KMV
BHFM Small and ratings (if any)
Medium Corporates
No Financial rating for SG Obligor Rating ?

BHFM
11
Screen Examples: Obligor Rating Synthesis
12
Screen Examples: indicators of performance
13
RAROC and EVA
RAROC = measures the risk adjusted profitability of equity.
This indicator can be expressed in terms of creation of value for the shareholder.
⇒ the EVA concept (Economic Value Added).
Ratio
Revenues – Expected Loss

RAROC =
Economic Capital
Amount
EVA = Revenues – Expected Loss – x % Econ. Capital (*)
(*) x% = return expected by shareholders beyond the risk free rate

14
RAROC & EVA
RAROC EVA Result
Good return - exceeds shareholder’s expectations
0 Positive return - covers shareholder’s expectations
Positive return - below shareholder’s expectations
Negative risk-adjusted return

Interest of the RAROC implementation as part of
the reform of the prudential rules (Basel 2006)
Goal = Taking better into account the diversity of the bank’s risks (Mac
Donough ratio versus Cooke Ratio)
Means = RAROC – type principles/models, in particular internal rating for the
IRB approach (advantageous specific approach for the equity calculation)
Validation of the models : many uncertainties, particularly about the
validation of the models (it would be logical it is under the responsibility of the
French supervisor)
The exchange of information between subsidiaries and local supervisors is
essential but it is firstly necessary the subsidiaries and SG Group (Paris)
coordinate themselves to spread a common and consistent external message.
For the time being, only SG Paris is allowed to communicate on this subject.
16
RAROC project objectives
KEY ISSUES GOALS
•Capital Budgeting
•Regulatory capital
management
•Capital Structure
•Entry / Exit decisions CAPITAL

CAPITAL
•Transfer Price ALLOCATION
ALLOCATION
•Compensation
•Limits setting RISK

RISK ADJUSTED
ADJUSTED
•Risk provisions setting PERFORMANCE
PERFORMANCE MANAGEMENT
MANAGEMENT
•Hedge/sell
recommendations
RISK
RISK CONTROL
CONTROL
•Obligor and Facility Ratings
•Transaction RAROC & EVA
RISK
RISK MEASUREMENT
MEASUREMENT
•Structuring and pricing
17
The Starweb Software
18
Starweb …
IS A DECISION MAKING TOOL…
using Intranet Technology (accessible from each PC, unique central database, simultaneous
access to the same client by different users)
and RAROC models
Counterparts ratings (Corporate, Financial Institutions …)

> Preliminary step to facility ratings & RAROC calculation
> Pre-requisite to portfolio analysis & management (Ì not possible with Starweb)
Ex-ante facility ratings (Commercial banking, Structured finance…)
Calculate ex-ante indicators (RAROC, EVA…) for facilities
… BUT IS NOT A PORTFOLIO ANALYSIS TOOL

(or sub-portfolio) 19
Starweb: Pre-requisite to portfolio analysis
Client Referential Ex-Ante Analysis Database Ex-Post Analysis
Client Description
STARWEB Rating Database
PRISM
(portfolio
Answers to Obligor management)
Economic Rating BCA Collect
Questionnaire (Commitments
Database)
RAROC, EVA,
Facility Detail Facility Rating
Economic Capital
DCCIT
RAROC, EVA,
Economic Capital…
Financial data
Reports
20
Using Starweb: When ?
To rate Counterparts
Each SG counterpart with an exposure or for each request of authorization : only
corporates with total assets > 2 M$
Ratings must be reviewed:

- at least every 12 months,
- as soon as a new financial statement is available
- as soon as a significant event in terms of risk analysis takes place
Rating must be attached to the credit file
To rate Facilities
Only for new transactions/authorizations
The Report with RAROC ratios must be attached to the credit file
21
Manual of DAI Number
,
(FICLI request & Customer Registration)
DAI Manual Page 1 of 27

Contents:
Page
• Index …………………………………………………. 3
• Objective …………………………………………………. 5
• Description …………………………………………………. 6
• Procedure …………………………………………………. 8
• FICLI steps ………………………………………………… 11
• DAI report ………………………………………………… 22
• The Generic DAI numbers ………………………………………… 24
• The follow-up procedure of Banks' DAI numbers ………………. 27

Index :
Page
• Objective …………………………………………………. 5
What is DAI number
Objective
• Description …………………………………………………. 6
Which client takes DAI number
When to apply for a DAI number
How to apply for a DAI number
Types of DAI number ……………………………………………. 7
How to feed-in the DAI number into the customer file in Unix
• Procedure ……………………………………………………. 8
Parties involved
Legal Documents
Time Limit
The Process Cycle and The role of each party
1. Credit Department at branches …………………… 9
3. Customer Service Department at branches
4. Trade Finance Unit (TFC) …………………………. 10
5. Financial Department
6. Retail Division at Mixed Branches/Retail Branches
7. Loan Center Unit
• FICLI steps ………………………………………. 11

First: The FICLI request form
Second: Simple direction for how to Prepare FICLI Request by the
branch …………………………………………………....……. 13
Third: Description of FICLI Request form …………………. 15
Fourth: The relation with the customer file in UNIX ……….. 17
I. Update of the customer file in UNIX (new screens)
II. A Simple description of “Level (3) – screens ( 1) and ( 2)” 18
A- Main Particularities
A-1. Distinctive Criteria
A- 2. How to use
B- Future Enhancement……………………………… 19
C- MIE Process number
III. Essential remarks on feeding both customer file and the
FICLIWEB …………………………………………….. 20

• DAI report …………………………………………………………. 22
Clients / Banks carrying DAI number report
1. Objective
2. A Simple description of “Clients / Banks carrying DAI number”
3. Main Particularities
A .Distinctive Criteria
B. MIE Process ………. ……………………………… 23
• The Generic DAI numbers ……..………………………………. 24

1. Individuals
2. Banks ……………………………………………………. 26
3. Corporate
4. Others
• The Follow-up Procedure of Banks' DAI numbers ……………. 27

Objective
What is DAI number:
DAI number is a number given by SG to each client, in order to identify it in

their registration system.
Objective
One essential condition to comply with the Basle Committee

recommendations on Credit Risk Management lies with adequate and reliable
risk information systems.
A central SG group client file is one of the most important constituent for an
information system to provide an accurate view of our risk portfolio.
Its quality mainly depends on our watchfulness and our ability to constantly
perform a proper and complete identification, knowledge and registration of
all our clients.
In this respect, it is particularly critical to assign each client to a single unit

which is the “Primary Client Responsibility Unit” (PCRU).
The registration of a client and the allocation of a DAI number will create a link
with its PCRU and all risks tools.
1- STARWEB
Tool for the rating of the customers and calculating the RAROC
(Risk Adjusted Return On Capital).
2- DCCIT
Tool for processing credit applications and managing credit
authorizations.
3- Collect
Tool for reporting the credit exposure.
4- PROVWEB
Tool for reporting the provisions.

Description
Which client takes DAI number:
This number is given to all corporate clients enjoying credit facilities, also to
banks.
It might be given to some Individuals related to corporate credit clients.
As for the majority of Individual clients there are generic DAI numbers, based
on nationality.
When to apply for a DAI number:
Corporate Clients
For new clients, the branch has to apply when it starts preparing the credit
file.
For existing clients, all these should have DAI number by now, if not, the
branch has to immediately apply for missing codes.
Individuals Clients
No need to apply for DAI, since there are already pre-prepared generic
codes.
Banks
TFC unit corresponds with SG to apply for a DAI number for each
Bank/Transaction.
How to apply for a DAI number:
Corporate Clients
Through a FICLI request.

Then the FICLI request is registered in the FICLI WEB.
FICLI Web was initiated in the customer registration project.
Individuals Clients
By using the generic codes tables.
Banks
TFC corresponds with SG by e-mail or fax.

Types of DAI number:
1. DAI number for each Corporate Client

2. Group number for each Group
3. DAI number for each Bank
4. Generic DAI number for Individual per nationality
How to feed-in the DAI number into the customer file in Unix:
1. DAI number consists of 12 digits (i.e.DAI000000000).

2. Currently the available space in field 30 in the customer file accepts
only 6 digits.
3. The user should feed the provided number preceded by zero’s to
reach 6 digits.

Procedure
Parties involved are:
1. Credit Department at Branches

3. Customer Service Department at Branches
4. Trade Finance Unit (TFC)
6. Retail Division at Mixed Branches/Retail Branches
7. Loan Center Unit
Legal Documents:
1. Commercial Registration.
2. Tax card.
Time limit:
For new clients:

Corporate Clients:
Once the branch starts to study and prepare a credit file.
Individuals Clients
When opening the customer-file.
Banks
Once TFC receives a request for a new transaction concerning a bank that
it is the first time NSGB deals with it.
For existing clients:

Corporate Clients:
Dead line end of 2004.
Individuals Clients
Banks
The Process Cycle and The role of each party:
It is very important that each party perform its role punctually to complete the
codification of all clients and banks.

1. Credit Department at Branches.
• Apply to register the corporate client in the FICLIWEB to obtain the DAI
number.
• Send the FICLI request to the credit control unit.
• Insure that the DAI number is fed into the customer-file of the client.
• Rectify any mis-codification.
• Provide a hard copy for of the legal document to be sent to BHFM via
CCU.
• In case the corporate client is part of a group, the branch has to
register this group as well in order to obtain a group number for the
group.
• To register a group, it requires to register a mother company for the
group, there are three probabilities:
1. The mother company is NSGB client and its information is
already registered.
2. It is not NSGB client, then the mother company of the group is
registered even if there are no commercial relationship.
3. If the group belongs to an individual person, and as SG don't
register individual person in FICLI data base, please choose
one of companies that belong to this group as a mother
company.
• For subsidiaries of international groups, an official document with
capital shares (i.e. annual report) to justify the attachment must be sent
to BHFM.
• Register the FICLI request in the FICLIWEB.

• Send the hard copy for of the legal document to BHFM.
• Send-back the DAI number of the corporate client to the branch.
• Follow up that all corporate clients are properly codified in the customer
file.
• Register new group in FICIWEB.
• Send-back the group number of the group to the branch.
3. Customer Service Department at branches
• Feed-in the DAI number for :

1. Corporate clients
2. Individual clients

4. Trade Finance Unit (TFC).
• Check that each banks is codified by a DAI number.

• Insure that each bank carries the same DAI number in case it has
several accounts in different branches.
• Rectify any mis-codification.
• Feed-in the DAI number for Banks.
6. Retail Division at Mixed Branches/Retail Branches.
• Check that all credit Individual clients, including staff are properly
codified by the generic DAI number.
• Rectify any mis-codification..
7. Loan Center Unit
• Follow up that all Individuals clients are properly codified by the relative
generic DAI number.

FICLI steps
First: The FICLI request form
Current Administrator :
History
Status Creation date Status modification date

Draft 06/05 12:56 PM
FICLI INFI REQUEST
SG Entity ID SG entity name

0631100000 NSGB NAT. SG BK LE CAIRE
Request type
Creation
DAI number Business name
Local Client ID
Country code Country name
Comment
Address Outside France

Name
Miscellaneous
Street / Road
Town

Address country code Address country name
Business activity code Business activity name
Client type code Client type name
Group number Group name
Follow up sector ID Follow up sector name
SPM number SWIFT ID SIREN ID

Second: Simple direction for how to Prepare FICLI Request by the
branch
1- Business Name
• As registered in the official documents ( Commercial Register, Tax

Card, etc…), not to exceed 90 characters including spaces.
• It should be exactly the same as fed into level three in the customer
file.
2- Local client ID = Client Number
Seven figures starting with Branch Code (two digits) then the client number
(five digits) without any spaces in-between. (XXXXXXX)
3- Country Code
It is always EG (i.e. EGYPT)
4- Address Box
Name: it is the same as the business name, but should not exceed 32
character, so sometimes it is possible to use the common name (short
name) of the company instead. ( i.e. UNIONAIRE, ANSDK, ….)
Street/Road/Town
• As shown in the official documents ( Commercial Register, Tax Card,

etc…) not to exceed 32 characters including spaces per field.
• It should be exactly the same as fed into levels one and three in the
customer file.
5- Address Country Code
It is always EG (i.e. EGYPT)
6- Business Activity Code
• To be chosen from the nomenclature Business Activity Codes (NAE) .

• It should be exactly the same as fed into level three in the customer
file.

7- Client Type Code
It is always code. 40 (i.e. Corporate Client)
8- Group Number/name
In case the customer belongs to any existing group, just mention the group
name.
For new groups, additional information of the mother company is required as
follows:
-Business name:
-Address: Street / Road:
Town:
-Business activity code:
9- Follow up Sector
It is always BHFM/BAN/EGY-NSGB which equals 3000339350

Third: Description of FICLI Request form
Item Data Entry Requirements

by
NSGB or BHFM
Appears History = before transmitting, then name of
Current Administrator
Automatically BHFM user.
Draft = before registration

Appears
Status Pending = after transmitting the request
Automatically
Exported = after registering the DAI number
It is the FILCI request end-result after the

DAI number BHFM
transmission
Should not exceed 90 characters including
Business name User in NSGB
spaces.
Branch number + Client's number xx xxxxx

Local Client ID User in NSGB
(no space in-between)
Country Code User in NSGB Always EG, to be chosen from drop-down list
Appears
Country Name EGYPT
Automatically
Group name if any / mother company
Comment User in NSGB
information
(Not exceed 32 characters including spaces

- Address
per field)
- Name
-Same as Business name
-Usually empty, unless used as extension of

-Miscellaneous -User in NSGB address
-Includes No. of street and area (Not exceed
-Street/Road
32 characters)
Ex. Cairo, Giza, Alex……… etc.
-Town
Address Country Code User in NSGB EG, to be chosen from a drop-down list
Appears
Address Country name EGYPT
Automatically
Business Activity Code User in NSGB To be chosen from drop-down list
Business activity Appears

The name of activity
Name Automatically

Always code 40 to be chosen from the drop-
Client Type Code User in NSGB
down list
Appears
Client Type Name Corporate
Automatically
Look for NSGB, to be chosen from drop-
Follow up sector ID User in NSGB
down list
Appears
Follow up sector name BHFM/BAN/EGY-NSGB =3000339350
Automatically
SPM number BHFM Not applicable for the time being
Swift ID BHFM Not applicable for the time being
SIREN ID BHFM Not applicable for the time being
Customer’s data to be transmitted to BHFM/SG Paris must be accurate and

validated by the Head of Risks before transmission.

Fourth: The relation with the customer file in UNIX
Some of the information listed in the FICLIWEB must be a duplicate of the

data fed into the customer file in Unix.
In this regard a new level in customer file; level three, was created to serve
the data required in the FICILWEB.
To facilitate detect their location in the customer file, we highlighted them in
Yellow.
I. Update of the customer file in UNIX (new screens)
Objective:
New screens in the customer file within UNIX created to serve the customer
registration project.
Level 3 screen 1: it is a simple duplicate of level 1.

UPDATE OF THE CUSTOMERS FILE
01 MVT CODE ? 3
02 REC. TYPE 3 38 COLLATER. 0 NO COLLAT. 20 RES-COUNTR EG
03 ENTITY 04 39 MNEMO BDR 21 LANGUAGE 1
04 CUSTOMER 15018 40 BDR NUMBER 0000000000 22 NATIO-RISK EG
05 LEVEL 2 23 AMOUNT
06 LEVEL 3 15018 24 CURRENCY
07 LEVEL 4 25 EXPIRY DAT
08 NAME 10TH OF RAMADAN SPINNING INDUST/ 26 APP. SWIFT
09 SHORT NAME 1OTH RAMADAN 27 SWIFT CODE
10 ADDRESS 28 FIN RI COU 00
11 10 TH OF RAMADAN 29 FLYERS 1
12 Cairo 30 DAI NUMBER 000000
13 P.O.BOX 81 31 TELEX NUM.
14 TITLE 0011 COMPANY 32 DSTRCT/ZIP 000000000000000
15 CUST. TYPE 22 33 AC MANAGER 000
16 ECO. AGENT 6 34 RATING
17 RESID.OR N 1 35 HO DPT
18 ECO. SECT. 37
19 OCCUPATION
ITEM NO TO MODIFY : ___ NEW VALUE :

Level 3 screen 2: it is a new screen
UPDATE COMPLEMENTARY CUSTOMERS FILE
CUSTOMER NB : 15018 SHORT NAME : 1OTH RAMADAN
01 BUSINESS NAME : 10TH OF RAMADAN SPINNING INDUSTY
02 NAE ACTIVITY CODE : 171A COTTON-TYPE FIBRES SPINN
03 SG CUSTOMER TYPE : 40 COMPANIES FOR COMPANIES
04 MEMBERSHIP GROUP NUMBER : 00000000

05 MEMBERSHIP GROUP NAME : XYZ
06 MAIN OPERATING ENTITY ID : 3000326282 ACRONYM : BHFM/RIS
07 FOLLOW-UP SECTOR ID : 3000326282 ACRONYM : BHFM/RIS
08 SIZE OF CUSTOMER :M ACRONYM : MEDIUM
FIELD NUMBER TO MODIFY ? __
II. A Simple description of “Level (3) – screens ( 1) and ( 2) ”
These screens are designed as elaborated in the above two tables.
A - Main Particularities:
A-1. Distinctive Criteria:

Level three in customer file consists of two screens.
Level three in customer file is accessed by the same regular process 486.
A-2 .How to use:
Level (3) – screen (1) - Update of the customers file screen
i) How is it possible to open screen (1) in level (3) for an existing client?
1. First, the user must feed-in (3) in field number 01 (MVT CODE)
2. Then, feed-in (3) in field number 02 (REC. TYPE).
3. Then, feed-in the branch number (xx) and account number (xxxxx) in fields
03 (entity) and 04 (customer).
4. After feeding the above four figures, all data of the customer appears
automatically.
5. These data are automatically copied from level (1).
ii) This process is valid only for the corporate clients who already have a level
3 record in the customer file.
iii) As for New customers who do not have level 3 records, the users will have
to create a new record for each using process 486 ( the user will put 2 in field
01 (MVT CODE)), copying manually all the information from the
corresponding level 1 record for the same customer into the new level three
per customer.
Level (3) – screen (2) - Update complementary customers file screen
i) How is it possible to open screen (2) in level (3) for an existing client?
1. After exiting screen (1), the second screen appears automatically.
2. Field number (01) Business name: Please feed in the customer name as
registered in the commercial registration up to 90 characters including
spaces.
3. Field number (02) NAE activity code: Please feed in one of the
nomenclature of Business activities, 700 codes, then its description will
appear automatically.
4. Field number (03) SG Customer type: Automatically code 40 appears
accompanied by its description “companies for companies”.
5. Field number (04) Membership group number: To be fed manually after
receiving it from BHFM.
6. Field number (05) Membership group name: To be fed manually.
7. Field number (06) Main operating entity ID: Automatically code
3000326282 appears accompanied by its description “BHFM/RIS”.
8. Field number (07) Follow-up sector: Automatically code 3000326282
appears accompanied by its description “BHFM/RIS”.
9. Field number (08) Size of customer: Please feed S, M or B then its
description will appear automatically.
B- Future enhancement:
• To add the mother company name.

• To add the BPM number.
• To apply the automatically copying of data from level (1) to level (3) for
new customers.
C- MIE Process: is Process number 486.

III. Essential remarks on feeding both customer file and the
FICLIWEB
Title Description
• It is the Client’s full Name as registered in commercial

registration – (up to 90 characters).
• Please use standardized Phonetics Transliterations.
• Please always check the spelling.
• Don’t write Hold mail (or any other irrelevant word) in the
Business
name field.
Name • Don’t split the name if it is too long or write part of it in the
address field. Instead prepare, as additional data, a short
name not longer than 32 characters.
• In case the client has an abbreviation name, please arrange to
put it within above long and short names.
• Should be consistent.
• Please Refer to CBG/CRU or MRU, for groups managed
Name of /followed by them.
• Please refer to Risks Department for other groups .
Group • In case of registration of companies that belong to
international groups,. a recent official paper as a proof of
membership (annual report...) must be submitted to BHFM.
• Should be consistent.
• Please Refer to CBG/CRU or MRU, for groups managed
/followed by them.
• Please refer to Risks Department for other groups Essential
information:
Business Name:
Address: number and street
Name of City:
Business Activity code:
Mother Three cases:
- The mother company is a client of NSGB and will be registered,
company so you will use its available data.
- The mother company is not a client of NSGB; please arrange to
provide its essential information.
So, it would be registered even if there is no commercial
relationship
- The group belongs to an individual person (but the project
doesn't register individual person in its data base).
so, please choose one of companies that belongs to this group to
be taken as mother company.

Number and street (please
Address use only field 10 and 11 in
customer file)
City name (please use only • Please avoid writing hold mail.
Address • Please don’t use these fields
field 12) to complete the client’s name.
City code (please use only

Address
field 13)

DAI Report
Clients / Banks carrying DAI number report
Objective:
• A daily report on STORQM captures clients/banks having DAI number

fed into UNIX
• To facilitate retrieving the DAI number for any client/bank.
• To monitor the feeding process by branches.
A Simple description of “Clients / Banks carrying DAI number”
This tool is designed in the shape of the following table:

National Societe Generale Bank Page no.:
Clients / Banks carrying DAI number

Branch:
Date:
Customer
Branch Number Customer Name DAI number
Number
(5 digit) (Full)
Total count per category
Total count per branch
The report is sorted by:

• Branch
• Individual
• Corporate
• Then at its bottom Banks.
Main Particularities:
A - Distinctive Criteria:
This report meets the following requirements:

1. Detect any client carrying DAI number, whether corporate or
Individual..
2. Detect any Bank carrying DAI number, whether local or foriegn..

B -MIE Process:
1. This report is processed after the end of each day.

2. It is stored in the STORQM on a daily basis after the end-of-day
process..
3. Clients / Banks carrying DAI number report is installed in the credit list
in STORQM, under the following name:
• “DAI Report 01”

The Generic DAI numbers
1- Individuals
DAI RAISON SOCIALE CODE PAYS

107090 PERSONNES PHYSIQUES ABU DHABI XA
41611 PERSONNES PHYSIQUES AFRIQUE DU SUD ZA
107073 PERSONNES PHYSIQUES ALGERIA DZ
48771 PERSONNES PHYSIQUES Allemagne DE
107058 PERSONNES PHYSIQUES ANDORRE AD
104469 PERSONNES PHYSIQUES ARABIE SAOUDITE SA
95590 PERSONNES PHYSIQUES ARGENTINE AR
88340 PERSONNES PHYSIQUES AUSTRALIE AU
106348 PERSONNES PHYSIQUES Autriche AT
107068 PERSONNES PHYSIQUES BAHAMAS BS
88339 PERSONNES PHYSIQUES Belgique BE
104337 PERSONNES PHYSIQUES BERMUDES BM
107065 PERSONNES PHYSIQUES BOSNIA BA
55494 PERSONNES PHYSIQUES BRESIL BR
107067 PERSONNES PHYSIQUES BRUNEI BN
107066 PERSONNES PHYSIQUES BULGARIA BG
121999 PERSONNES PHYSIQUES BURKINA FASO BF
107070 PERSONNES PHYSIQUES CAMEROUN CM
88335 PERSONNES PHYSIQUES Canada CA
104454 PERSONNES PHYSIQUES CHILI CL
88336 PERSONNES PHYSIQUES CHINE CN
101862 PERSONNES PHYSIQUES CHYPRE CY
107071 PERSONNES PHYSIQUES COLOMBIA CO
16246 PERSONNES PHYSIQUES COREE DU SUD KR
95487 PERSONNES PHYSIQUES COTE D'IVOIRE CI
90286 PERSONNES PHYSIQUES CROATIE HR
107072 PERSONNES PHYSIQUES DANEMARK DK
16243 PERSONNES PHYSIQUES EGYPTE EG
32319 PERSONNES PHYSIQUES EMIRATS ARABES UNIS AE
90314 PERSONNES PHYSIQUES Espagne ES
118408 PERSONNES PHYSIQUES FIJI FJ
107074 PERSONNES PHYSIQUES FINLAND FI
88334 PERSONNES PHYSIQUES France FR
107075 PERSONNES PHYSIQUES GABON GA
89368 PERSONNES PHYSIQUES GRANDE BRETAGNE GB
84806 PERSONNES PHYSIQUES GRECE GR
89338 PERSONNES PHYSIQUES HONK KONG HK
102953 PERSONNES PHYSIQUES HONGRIE HU
107080 PERSONNES PHYSIQUES ILES CAYMANES KY
95454 PERSONNES PHYSIQUES INDE IN
29413 PERSONNES PHYSIQUES INDONESIE ID
107078 PERSONNES PHYSIQUES IRAK IQ
107079 PERSONNES PHYSIQUES IRAN IR
107076 PERSONNES PHYSIQUES IRELAND IE
107077 PERSONNES PHYSIQUES ISRAEL IL
57013 PERSONNES PHYSIQUES Italie it
52585 PERSONNES PHYSIQUES JAPAN JP
104455 PERSONNES PHYSIQUES JORDANIE JO
104456 PERSONNES PHYSIQUES KOWEIT KW
73836 PERSONNES PHYSIQUES LETTONIE LV
97288 PERSONNES PHYSIQUES LIBAN LB
107082 PERSONNES PHYSIQUES LIBYA LY
107081 PERSONNES PHYSIQUES Luxembourg LU
97684 PERSONNES PHYSIQUES MACAU MO
102092 PERSONNES PHYSIQUES MADAGASCAR MG
16245 PERSONNES PHYSIQUES MALAISIE MY
118581 PERSONNES PHYSIQUES MALDIVES MV
112500 PERSONNES PHYSIQUES MALI ML
114916 PERSONNES PHYSIQUES MALTE MT
107083 PERSONNES PHYSIQUES MAROC MA
104460 PERSONNES PHYSIQUES Mexique MX
621227 PERSONNES PHYSIQUES MONTE CARLO MC
104468 PERSONNES PHYSIQUES MYANMAR MM
104461 PERSONNES PHYSIQUES NEPAL NP
118384 PERSONNES PHYSIQUES NEW ZEALAND NZ
107084 PERSONNES PHYSIQUES NORVEGE NO
107085 PERSONNES PHYSIQUES OMAN OM
97444 PERSONNES PHYSIQUES PAKISTAN PK
101968 PERSONNES PHYSIQUES PANAMA PA
16244 PERSONNES PHYSIQUES PAYS BAS NL
107086 PERSONNES PHYSIQUES PEROU PE
88337 PERSONNES PHYSIQUES PHILIPPINES PH
104462 PERSONNES PHYSIQUES POLOGNE PL
104463 PERSONNES PHYSIQUES Portugal PT
104464 PERSONNES PHYSIQUES QATAR QA
107069 PERSONNES PHYSIQUES REPUBLIQUE DEMOCRATIQUE DU CG
CONGO
98988 PERSONNES PHYSIQUES REPUBLIQUE TCHEQUE CZ
97296 PERSONNES PHYSIQUES ROUMANIE RO
105810 PERSONNES PHYSIQUES RUSSIE RU
88914 PERSONNES PHYSIQUES SENEGAL SN
16241 PERSONNES PHYSIQUES SINGAPOUR SG
107088 PERSONNES PHYSIQUES SLOVAKIA SK
107087 PERSONNES PHYSIQUES SLOVENIA SI
118470 PERSONNES PHYSIQUES SRI LANKA LK
95353 PERSONNES PHYSIQUES SUEDE SE
95480 PERSONNES PHYSIQUES SUISSE CH
18128 PERSONNES PHYSIQUES SYRIE SY
88333 PERSONNES PHYSIQUES TAIWAN TW
16242 PERSONNES PHYSIQUES THAILANDE TH
104470 PERSONNES PHYSIQUES TUNISIE TN
104471 PERSONNES PHYSIQUES TURQUIE TR
107089 PERSONNES PHYSIQUES UKRAINE UA
88338 PERSONNES PHYSIQUES UNITED STATES US
104472 PERSONNES PHYSIQUES VENEZUELA VE
95593 PERSONNES PHYSIQUES YOUGOSLAVIE YU

2- Banks

115015 BANQUES BULGARIE BG
122001 BANQUES BURKINA FASO BF
123231 BANQUES ARGENTINE AR
115168 BANQUES CAMEROUN CM
106078 BANQUES CHYPRE CY
100660 BANQUES EGYPTE EG
112130 BANQUES ISRAEL IL
123473 BANQUES MADAGASCAR MG
115100 BANQUES MAROC MA
106209 BANQUES ROUMANIE RO
112431 BANQUES UKRAINE UA
115211 BANQUES LIBAN LB
3- Corporate

123230 CORPORATES ARGENTINE AR
112420 CORPORATES BELARUS BY
112419 CORPORATES BULGARIE BG
121998 CORPORATES BURKINA FASO BF
115169 CORPORATES CAMEROUN CM
106079 CORPORATES CHYPRE CY
112422 CORPORATES CROATIE HR
104657 CORPORATES EGYPTE EG
112423 CORPORATES HONGRIE HU
112424 CORPORATES LITUANIE LT
112426 CORPORATES MACEDOINE MK
123474 CORPORATES MADAGASCAR MG
115101 CORPORATES MAROC MA
115210 CORPORATES LIBAN LB
112425 CORPORATES MOLDAVIE MD
112421 CORPORATES REPUBLIQUE TCHEQUE CZ
106208 CORPORATES ROUMANIE RO
112427 CORPORATES RUSSIE RU
112429 CORPORATES SLOVAQUIE SK
112428 CORPORATES SLOVENIE SI
121710 CORPORATES SYRIE SY
112430 CORPORATES UKRAINE UA
4- Others

122000 STAFF BURKINA FASO BF
123471 STAFF CAMEROUN CM
123472 STAFF MADAGASCAR MG

The Follow-up Procedure of Banks' DAI numbers
First phase: Rectifying the current situation
The current situation has four anomalies cases:

1. Local and International banks with no DAI number available in the
UNIX system.
2. Local and International banks with no DAI number because Paris
hasn't provided them.
3. Banks accounts opened in branches with no outstanding.
4. Review the correct feeding of DAI number in the Local system,
specially for cases of several accounts for one bank opened in
different branches.
It is essential to have a daily report using the business object to serve

TFC follow-up process.
This report will differentiate the banks into:
Banks with DAI number in the system and without .
Also Banks with outstanding and without
Local and non local banks.
The report will sort all banks branch wise, with count of banks in each
category.
Process:
TFC will review the banks status using the above report along with both
the codes received from Paris and STORQM DAIreport01.
TFC will send to Financial Department to update the DAI number in the
system.
TFC will send to all concerned branches to close Banks' accounts with
zero outstanding.
A copy to be sent to Risks/OTU to help in the review the implementation of
the above second step.
Then TFC will prepare a list of all local and non-local banks with no DAI
number provided from Paris, and send it to Risks Manager to help directing
it to the concerned unit in Paris.
Second phase: Procedure for Feeding-in and Follow-up DAI number

for Banks
In three steps
1. TFC will correspond with Paris to provide a DAI number for each
bank/Transaction.
2. TFC will send to the financial department the DAI number to feed it
in the system.
3. TFC will constantly review that all banks have DAI in the system
using both the business object report and the STORQM DAIreport01.

ORGANISATION OF RECOVERY
1.1 ORGANISATION OF THE RECOVERY DEPARTMENT
The Recovery Department reports to the Head of Risk Division and is responsible for:
- recovery policy and organisation,
- assisting branches in pre-disputed phases,
- dealing with all files (corporate and private customers),
- proposing and managing provisions, in conjunction with the Risk Division,
- carrying out all administrative tasks associated with the function (reporting, Credit
Committees, relations with the authorities and representatives of the law, etc.)
1.2 PROVISIONS FOR MONITORING RECOVERY
- The decision to downgrade a commitment and reclassify it as non-performing is the

responsibility of the Credit Committee and the Watch Names Committee, in
accordance with local regulation, in response to a proposal from the Risk Division.
- The same provisions apply to the rating assigned to the file, which determines the
entity responsible for the file and implies setting objectives.
- This decision, taken as events arise, must be subject to periodic review of the file by
the above mentioned committees, in accordance with the objectives set.
2. IDENTIFICATION OF THE THREE PHASES AND TRIGGERING EVENTS
The role of the Recovery function breaks down into three clearly identified phases: commercial,
pre-disputed and disputed.
2.1 – Identifying the three phases of recovery
Approaches to the customer to regularise early incidents ( past dues, refused cheques,
exceeding authorised overdraft limits, etc.) and subsequently, if necessary, to recover debts,
have been divided into three distinct recovery phases, to be understood in the broad sense:
¾ commercial negotiation phase,

¾ pre-disputed phase,
¾ disputed phase.
2.2 – Identifying triggering events
The opening of each phase and the shift to the subsequent phase are dictated by the
occurrence of events ("triggering events"), the most common of which are described in
Appendix 1. Naturally, these cannot cover all eventualities, given the diversity of possible
events, and entering in the different phases described below will depend on the assessment of
the risk involved in each case.
These triggering events or "warning signs" are crucial as the basis for effective management of
recovery: The key to optimum recovery lies in quick and prompt action as soon as the first
incidents are detected ( past dues in postfinance facilities and term loans, refused cheques,
refused direct debit advices, sharp increase in debit operations, legal proceedings brought by a
third party, request for information from a third party, account showing no movement, etc.).
The occurrence of any or all of these triggering events should be the signal for an in-depth
assessment of the customer's situation, a re-assessment of the commercial relation and the
implementation of actions designed to regularise any incidents or recover sums due to us.
As part of IT research projects to be developed, every effort will be made to create automatic
indicators ("warning signs") to alert establishments to the occurrence of certain standardised
triggering events (see Risques Cdt 13 for reporting packages to be used).
2.3. THE COMMERCIAL NEGOTIATION PHASE
¾ Scope
The "commercial phase of recovery" is designed to regularise the first qualified incident (see
appendix 1 on triggering events or warning signs).
The term "recovery" does not confer any pre-disputed nature on this phase which, as its
name suggests, remains commercial and should culminate in most instances in the
regularisation of the customer's situation.
¾ Files should remain in the hands of the customer manager with the aim of
reducing our commitments and/or improving our position in terms of guarantees (see
the BHFM rating grid in the Appendix 2).
¾ The commercial negotiation phase applies exclusively to files in category 6A.

This category represents a sensitive risk although a provision is not yet envisaged.
Sensitive risk subject to monitoring for accounts and loans with monthly due dates.
The customer is given 30 days to regularise the situation, after which time the file
moves into the pre-disputed phase.
¾ Key players
This phase is dealt with by the customer manager, with support from line management as
required.
The Recovery Department may be consulted at this stage, as necessary, when dealing with the
most important files or those presenting particular difficulties.
¾ Actions
The main actions to be taken during this phase are:
- making contact to deal with the first incident, reminders,
- negotiation in the commercial phase, reaching an agreement (strengthening and/or

obtaining guarantees, repayment plan, rescheduling, restructuring loan), followed by a
repayment plan,
- restriction or withdrawal of means of payment, as appropriate,
- preparation for the shift to the pre-disputed phase, or even directly into the disputed
phase, in the event of failure to regularise the situation (or immediately, depending on
the triggering event).
2.4. THE PRE-DISPUTED PHASE
¾ Scope
As a general rule, the pre-disputed phase should be engaged (see in particular triggering or
events or warning signals in the appendices):
- in the event of failure to regularise the situation within 30 days from the opening of
the commercial negotiation phase (see § 2.3 above),
- or immediately if the gravity of the situation warrants.
In most cases, this phase is intended to regularise the customer's situation at latest 60 days
from the opening of the phase or on expiry of the notice period if this exceeds 30 days.
It corresponds to a harder line on actions taken with respect to the customer, accompanied by a
change of correspondent. This change marks a significant shift in negotiations with the
debtor, and its impact should be exploited systematically.
¾ The file is forwarded to the Recovery Department (pre-disputed phase).
¾ The pre-disputed phase concerns files in categories 6B and 7 (files classed as 6B

concern only establishments which have the possibility of booking reserved interest).
¾ Actions
ª reminders, cancellation of facilities, notice of closure of the account, informing guarantors,
ª restriction or withdrawal of means of payment, as appropriate,
ª choice of recovery actions in the pre-disputed phase (including a shift into the disputed
phase in order to take preventive measures),
ª negotiation in the pre-disputed phase, reaching an agreement (strengthening and/or

obtaining guarantees, repayment plan, rescheduling, restructuring loan), stopping interest
payment, followed by a repayment plan,
ª use of an investigator,
ª preparation for the shift into the disputed phase in the event of failure to regularise the
situation (or immediately, depending on the triggering event).
2.5. THE DISPUTED PHASE
¾ Scope
As a general rule, the pre-disputed phase should be engaged (see in particular triggering
or events or warning signals in the appendices):
- in the event of failure to regularise the pre-disputed phase within 60 days or on

expiry of the notice period if this exceeds 30 days,
- or immediately if the gravity of the situation warrants.
¾ Files are transferred to the Legal Department. The distinction between 8 A and 8 B
(see the BHFM rating grid - Appendix 2) is crucial in order to concentrate and follow up
recovery efforts on files which offer a realistic hope of recovery:
• Category 8 A: files which hold out a real possibility of recovery thanks to

amicable or legal settlement. After examining the file, the recovery objective
(and hence the level of provisioning necessary) must be set by the manager
of the establishment, based on local regulations,
• Category 8 B: loans definitively compromised representing a total loss. The

provision must be increased to 100%. When local regulations permit, loans
should be written off.
¾ Key players
This phase is dealt with by the Recovery Department with support from representatives
of the law (bailiffs, barristers, notaries) and specialised service providers (property
valuers, investigators) accredited by the bank.
¾ Actions
- closing of accounts, demand for early repayment of lending (forfeiture of term), notice
to guarantors,
- statement of debts, opening of DDD accounts (Doubtful or Disputed Debts),
- choice of recovery actions in the disputed phase,
- negotiation in the disputed phase, reaching an agreement (protocol, etc.), monitoring

repayments,
- monitoring by representatives of the law,
- write-off as a partial or total loss.
Remark: booking of DDD commitments and/or under legal proceedings is carried out in the
pre-disputed or disputed phase, depending on local regulations.
APPENDIX 1
WARNING SIGNS OF A SHIFT INTO COMMERCIAL NEGOTIATION PHASE
BUSINESS CUSTOMERS
Debit in excess of 110% of the authorised amount for over 5 consecutive days (may be adapted in the light of
local practices)
Debit in excess of the authorised limit and no credit movement for 10 days or more (unless justified by the
seasonal nature of the activity). The time period may be adapted in the light of local practices.
Loss of negotiated movement in excess of 30% and existence of commitments.
Failure to comply with contractual financial ratios.
Emergence of the first unpaid instalment on a loan or bank credit.
Refusal of cheque(s) or direct debits or domiciled bills or refusal by the branch to carry out a transfer.
Misuse of a bank card.
Inscription on certain official registers
NFA (No Forwarding Address) verified, plus existence of commitment, with continued movement on the
account (otherwise, transfer direct to disputed).
Stoppage on the account or other attachment (securities, safe deposit, ...) plus existence of commitments.
Refusal to furnish documents or provision of suspect documents (accounts, reports, etc. ).

APPENDIX 1 (following)
WARNING SIGNS OF A SHIFT INTO PRE-DISPUTED PHASE
BUSINESS CUSTOMERS
Appointment of an ad hoc administrator or mediator (amicable settlement)
Failure to regularise the situation within 30 days leading to engagement of the commercial phase (payment
overdue by more than 30 days, etc.).
Emergence of a second unpaid amount on a loan or bank credit.
Failure to respect an agreed repayment agreement or undertaking given in the commercial phase and designed
to reduce or guarantee our exposure.
Triggering event(s) leading to the issue of a notice of closure (serious suspicions of wrongful and/or fraudulent
actions).
Breakdown in contact between the branch and the customer, failure to respond to a request for contact made by
registered letter plus existence of commitments.
Engagement of legal counsel by the customer.

APPENDIX 1 (following)
WARNING SIGNS OF A SHIFT INTO DISPUTED PHASE
BUSINESS CUSTOMERS
Seriously reprehensible behaviour (wrongful and/or fraudulent actions).
Failure to regularise the pre-disputed phase within 60 days (instalment unpaid for over 60 days, etc.) or on
expiry of the notice period if this exceeds 30 days (closure at 60 days).
Emergence of a third unpaid instalment on a loan or bank credit (6 months for BCEAO countries).
Failure to respect an agreed repayment agreement or undertaking given in the pre-disputed phase and
designed to reduce or guarantee our exposure.
Disappearance of movement and existence of commitments.
Filing for bankruptcy.

APPENDIX 2
BHFM RATING GRID
SCORING CRITERIA ACTION

1 Leader on its market. Buoyant sector. Regular growth. Very sound financial structure.
Very good profitability.
Very good Shareholders and management of very high quality. Prefer
Compliance with Central Bank ratios.
2 Sound financial structure, good profitability but not eligible for category 1 for one of the
Good following reasons:
⇒ balance sheet in need of reinforcement on particular points
⇒ poor outlook for the business sector Prefer
Sound ⇒ age of managers
customers
3 Sound financial structure but more modest size. Prefer but deal
Repayment capacity good but the company shows certain weaknesses listed under 2. promptly with any
Fairly good problems with the
customer.
4 Sound financial structure but liquidity under pressure. Retain but monitor
Requires close attention, even if commercial relations are not called into question. developments
Acceptable Modest size. closely.
5 Several possible scenarios: Retain but

Sensitive but Business posing risk by virtue of an increasingly fragile financial structure or of size. reconsider
acceptable Business in the start-up phase. maintaining
Lacklustre sector. commercial
Significant downturn in movement. relations.
Sensitive Poor investment outcome. Strengthen
customers guarantees.
6A The credit risk is unacceptable. Disengage without

Sensitive Business in difficulties. Financial structure unbalanced. the need for
Significant downturn in movement. provisions.
Doubts as to the integrity of managers.
Withdrawal from the loan remains under consideration.
6B Equivalent to 6 A, but disengagement more problematic. Disengage,

Non-performing A loss is possible, although not certain. provision at least
the amount of
interest.
7 Partial loss virtually certain, but commercial relations maintained. Reduce

Non-performing commitments
gradually.
Doubtful Provision.
customers
8A Loans subject to legal or amicable recovery. Follow progress of
Non-performing procedures.
8B None, except
Non-performing Loans definitively compromised. provision 100%
Reminder: this scoring which is based essentially on an analysis of

counterparty quality, may be modified for a particular credit line in
accordance with its specific features. Any such modification should only
be made, however, as an exception and based on irrefutable facts.

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SUBJECT : RULES FOR APPROVAL & FOLLOW UP OF CREDIT FILES

FROM : YVES RIOU – NSGB/RIS

TO : Fathy AWAD , Seif MEKLAD – Regional Managers

COPY : Guy POUPET, Mohamed EL DIB, Joel BAY

You are kindly requested to inform all your credit officers.

1.2- Role of the commercial units

1.5 Role of the Credit Administration Unit

The Credit Administration Unit (CAU) is part of the Banking Services

1.6 Role of the control units

1.6.1 Credit Control Unit

2.2 Credit Authorities

Clients are broken down in seven categories as follows :

The procedure of segmentation is described in appendix 2, attached

1 Before establishing any contractual relationship with any new client,

• Consolidate in a central referential data base all credit authorizations

1 The “ client-group” concept applies each time we are in relationship with

The current customer rating system is based on the following principles:

2. RAROC rating by the STARWEB tool

Starweb is based on a quantitative analysis, and customers & transactions can be

2.5 - Creation and renewal of credit files

2.5.4 Medium term loans and leasing transactions

All the authorizations of credits granted to clients must be registered in the

2.6.2- Validity date of the authorizations

2.6.3 Risk rating and interest rates

2.7 Follow up and risk control

2.8 – Watch Names Procedure

This document is strictly confidential and for internal use only

1 Latest update: December 2004

The purpose of this document is:

1) Executive Committee (E.C)

The Executive Committee is composed of four members of NSGB Board of

2) The Credit Committee (C.C)

The Credit Committee is composed of three NSGB top executives:

If at least 2 members of the Committee are present, they form an adequate

2 Latest update: December 2004

The definition of a group of clients is the following :

This definition is based on legal criteria but sometimes the denomination of a

The Credit Committee cannot approve credit files related to :

• a) 40 Millions EGP for all types of credit facilities 100% secured by :

3 Latest update: December 2004

This limit is applicable for corporates rated below 6 (1 to 5) according

2- For individual clients

• a) 10 Millions EGP for secured facilities as follows :

• b) 5 Millions EGP for all types credit facilities unsecured or secured

For the same client, in the case of secured facilities as described in

4 Latest update: December 2004

The Credit Committee is allowed to write off outstandings for a maximum

The Credit Committee is authorized to delegate some of its powers to the

3) The Sub-Credit Committees (SCC)

3.1) The Sub-Credit Committee ( Domestic clients )

This Sub-Credit Committee is composed of two members : the Head of Corporate

5 Latest update: December 2004

This Sub-Credit Committee is composed of two members : the Head of

• a) 10 Millions EGP : for facilities secured up to 110% by :

This limit is applicable for corporates rated below 5 (1 to 4) according

• For the same client, in the case of secured facilities as described in

6 Latest update: December 2004

• specific transactions curved out of facilities already approved by the Sub

• an excess over a limit already approved by the Executive Committee or

4) The Regional Credit Committees

Further to the reorganization of NSGB network, it has been decided to create

4.1 Facilities to Corporates: