Regulatory Alerts2023-06-14
A circular dated June 14, 2023 regarding extending the temporary amendment regarding the treatment of non-performing loans to small and medium-sized companies in accordance with the instructions of International Financial Reporting Standard No. 9.
On June 14, 2023, the CEO of the Small and Medium Enterprises Development Bank, Egypt stated that due to the ongoing impact of various economic systems on small and medium-sized enterprises (SMEs), the Central Bank of Egypt's board has approved two main points: 1. Extending the timeframe for third-phase borrowers who do not comply with contractual requirements such as having outstanding debts exceeding 180 days, replacing the previous 90-day limit according to International Financial Reporting Standards (IFRS) 9. 2. Promoting third-phase borrowers to the second phase if they fulfill all the relevant and qualitative conditions of the second phase while settling overdue or troubled payments within 90 days, in accordance with current payment arrangements.