Regulatory Alerts2020-03-15
A circular dated March 15, 2020 regarding the precautionary measures that must be taken to confront the effects of the Coronavirus
The Central Bank of Egypt (CBE) has taken several emergency measures to maintain financial stability and ensure the availability of cash. They include: 1. Instructing banks to continue providing banking services, including loans, credit facilities, and foreign exchange transactions. 2. Providing liquidity support to banks through various tools, such as rediscounting operations for bills of exchange, loans, and local currency deposits. 3. Suspending all bank fees for the next six months related to the use of electronic payment systems, online banking, and ATM withdrawals. 4. Postponing the implementation of new rules concerning cash payments and the settlement of interbank balances. 5. Allowing banks to postpone repayments on unsecured loans and credit facilities for small and medium-sized enterprises (SMEs) for six months, without applying late payment fees or additional interest rates. 6. Enhancing communication channels between banks and customers through the establishment of call centers. 7. Increasing ATM cash withdrawal limits and allowing customers to make debit card payments using digital channels instead of cash withdrawals. 8. Reducing daily cash transaction limits for electronic payment cards, credit cards, and electronic wallets. 9. Encouraging electronic transactions over cash transactions. 10. Standby for intervention in case of disruptions in the financial and monetary systems. In conclusion, the CBE is committed to ensuring financial stability by taking all necessary measures to maintain confidence in the banking sector.