RESTRICTED
WORLD TRADE S/FIN/W/12/Add.24
17October 1997
ORGANIZATION(97-4760)
Committee onTrade inFinancial Services Original: English
COMMUNICATION FROM EGYPT
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofEgypt toMembers oftheCommittee
onTrade inFinancial Services.
____________
Thisinitial offerisconditional; Egypt reserves itsrighttomodify orwithdraw allorpartof
theSpecific Commitments onFinancial Services andtolistMFN exemption, atanytimeuntil
12December 1997.S/FIN/W/12/Add.24
Page2EGYPT
DRAFT SCHEDULE OFSPECIFIC COMMITMENTS -INITIAL OFFER ONFINANCIAL SERVICES
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
FINANCIAL SERVICES
Measures ofspecific application:
A.Insurance Services, themain criteria which theeconomic needs testapply areasfollows:
1.Surplus demand totraditional classes ofinsurance gives newcompanies anopportunity ofworking without harmful competition tothemarket or
financial positions ofexisting companies andconsequently policy holders.
2.Exhausting of50percentofthecapacity oftheexisting companies, which iscalculated onthebases ofsolvency margin, there isasurplus
demand inexcess ofthecapacity which enables anewcompany toachieve itspurposes.
3.Setting upofanewcompany leads toanincrease oftotalretention inthemarket; taking intoaccount thetechnical considerations.
4.Thenewcompanies shallintroduce newinsurance covers.
B.Other Financial Services
Commercial presence forconducting theactivities ofother Financial Services (Capital Market Services excluding trading insecurities) should be
incorporated inEgypt totaketheform ofajoint-stock company orapartnership limited byshares.S/FIN/W/12/Add.24
Page3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
BANKING SERVICES
A.Joint-Venture Banks
(JVBs)
-Acceptance of
deposits andother
forms ofrepayable
funds.
-Alltypes oflending,
including consumer
credit, andfinancing
ofcommercial
transactions.
-Allpayment and
money transmission
services, including
credit, charge and
debit cards, traveller 's
cheques andbankers
draft.(1)Unbound
(2)Unbound
(3)Theshare ofnon-Egyptians inthe
capital ofJVBs andprivate banks may
exceed 49percentoftheissued
capital ofanybank. Ownership
capital ofmore than10percentofthe
issued capital ofanybank, except
through inheritance, requires the
approval oftheCBE Board of
Directors.
(4)TheGeneral Manager should be
national.(1)Unbound
(2)Unbound
(3)Foreign service suppliers, inthe
context ofJVBs arerequired tooffer
on-the-job training fornational
employees.
(4)NoneS/FIN/W/12/Add.24
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Trading forown
account orfor
account ofcustomers
in:
a.Money market
instruments
(cheques, bills
andcertificate of
deposits);
b.foreign
exchange;
c.securities.
-Participation inshare
issues andthe
provision ofservices
related tosuchissues.
-Money broking.
-Portfolio management
advice.
-Safekeeping of
securities.S/FIN/W/12/Add.24
Page5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Credit reference
services and
-Safecustody services
B.Foreign Bank
Branches
Same activities
specified under (A)
above.(1)Unbound
(2)Unbound
(3)Economic needs testshallapply.
(4)None(1)Unbound
(2)Unbound
(3)Branches offoreign banks established
after5June1992, (thedateof
enforcement ofLawNo.37of1992)
maybelicensed todealinlocal
currency inaddition toforeign
currency subject tothesatisfaction of
minimum capital requirement,
adequacy ofprovisions andother
prudential measures (Art. 13ofthe
executive regulations ofthesaid
Law).
(4)NoneS/FIN/W/12/Add.24
Page6Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
C.Representative Offices
ofForeign Banks
(R.O.s)(1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Foreign banks which desire tosetup
representative offices should nothave
branches inEgypt.
-Activities ofR.O.s should beconfined
toconducting studies andpotential
investments, acting asliaison with
theirheadoffices andcontributing to
solving problems anddifficulties that
mayencounter theirheadoffices '
correspondents inEgypt.
(4)None(3)Unbound
(4)NoneS/FIN/W/12/Add.24
Page7Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
INSURANCE &INSURANCE RELATED SERVICES
1.Life, health, personal
accident(1)None
(2)None
(3)Foreign andjointventure companies
areallowed onlytocarry onbusiness
infreezones, provided thattheir
activities shallbeconfined tothe
transactions carried outinconvertible
currencies.
-Nomaximum limits required onthe
foreign shareholding infreezones.
-Economic needs testshallapply tothe
inland commercial presence (other
thaninfreezones) according tothe
criteria asstipulated inthehorizontal
section.
Relaxation ofeconomic needs test
shallbeconsidered in2000 forlife,
health &personal accident business.(1)None
(2)None
(3)NoneS/FIN/W/12/Add.24
Page8Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Foreign insurance companies branches
andagencies arenotallowed.
-Foreign capital equity shallbe51per
centofthetotalcapital required for
thecompany (other thaninfreezones)
asof1/1/2000
-Legal cessions ofthetotaltransactions
must beceded toEgyptian
Reinsurance Co.according tothe
percentages tobedecided bythe
supervisory authority and5percent
oftheCompany 'streaties toAfrican
Reinsurance Co.
(4)Qualified non-Egyptian directors are
allowed forafiveyeartermandmay
berenewed. Their appointment and
renewal issubject totheapproval of
theSupervisory Authority.
Anon-Egyptian director must haveat
leasttwoEgyptian understudies.(4)NoneS/FIN/W/12/Add.24
Page9Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2.Non-life insurance (1)Unbound
(2)None(1)Unbound
(2)None
(3)Foreign andjointventure companies
areallowed onlytocarry onbusiness
infreezones, provided thattheir
activities shallbeconfined tothe
transactions carried outinconvertible
currencies.
-Nomaximum limits required onthe
foreign shareholding infreezones.
-Economic needs testshallapply tothe
inland commercial presence, (other
thaninfreezones) according tothe
criteria asstipulated inthehorizontal
section.
Relaxation ofeconomic needs test
shallbeconsidered in2002 fornon-
lifebusiness.(3)NoneS/FIN/W/12/Add.24
Page10Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Foreign capital equity shallbe51per
centofthetotalcapital required for
thecompany (other thaninfreezones)
asof1/1/2003.
-Foreign insurance Companies
branches andagencies arenot
allowed.
-Legal cessions ofthetotaltransactions
must beceded toEgyptian
Reinsurance Co.according tothe
percentages tobedecided bythe
supervisory authority and5percent
oftheCompany 'streaties toAfrican
Reinsurance Co.
(4)Qualified non-Egyptian directors are
allowed forafiveyeartermandmay
berenewed.
Their appointment andrenewal is
subject totheapproval ofthe
Supervisory Authority.
-Anon-Egyptian director must haveat
leasttwoEgyptian understudies.(4)NoneS/FIN/W/12/Add.24
Page11Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3.Reinsurance and
retrocession(1)None
(2)None
(3)Foreign andjointventure companies
areallowed onlytocarry onbusiness
infreezones, provided thattheir
activities shallbeconfined tothe
transactions carried outinconvertible
currencies.(1)None
(2)None
(3)None
-Nomaximum limits required onthe
foreign shareholding infreezones or
inland.
-Foreign reinsurance companies
branches andagencies arenot
allowed.
-Insurance andreinsurance companies
arenotallowed todealwithreinsurers
notlisted inthesupervisory authority
list.
-Fivepercentofthecompany 's
treaties must beceded toAfrican
Reinsurance Co.
(4)None (4)NoneS/FIN/W/12/Add.24
Page12Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4.Auxiliary services
other than
intermediation:
a.Actuarial services (1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Foreign service supplier must be
authorized toperform thisprofession
from acompetent authority inhis
home country andregistered atthe
Egyptian register forthatpurpose.
(4)None(3)None
(4)None
b.Consultancy (risk
assessment andrisk
management only)(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)NoneS/FIN/W/12/Add.24
Page13Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
c.Lossassessment (1)Unbound
(2)Unbound
(3)Foreign service supplier must be
authorized toperform thisprofession
from acompetent authority inhis
home country andregistered atthe
Egyptian register forthatpurpose.
(4)None(1)Unbound
(2)Unbound
(3)None
(4)None
d.Liaison offices (1)None
(2)None
(3)Commercial presence isbound only
forpublic relations andmarket
research.
(4)None(1)None
(2)None
(3)None
(4)NoneS/FIN/W/12/Add.24
Page14Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
5.Intermediation (1)Bound onlyforlifeinsurance and
reinsurance services.
(2)Bound onlyforlifeinsurance and
reinsurance services.
(3)Unbound
(4)Unbound(1)None
(2)None
(3)Unbound
(4)Unbound
OTHER FINANCIAL SERVICES
A.SECURITIES
1.Underwriting (1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
2.Brokerage (1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)NoneS/FIN/W/12/Add.24
Page15Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3.Trading insecurities
(Buy andSellby
individual or
institution onthe
stock exchange)(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
4.Clearing and
settlement(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
5.Marketing andmarket
promotion(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)NoneS/FIN/W/12/Add.24
Page16Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
6.Portfolio and
investment
management(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
7.Establishment of
collective investment
funds(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
8.Venture capital (1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)NoneS/FIN/W/12/Add.24
Page17Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B.FINANCIAL
LEASING(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None