2020-01-08

A circular dated January 8, 2020 following the initiative for irregular legal persons (creditworthiness categories 9 and 10)

The letter, dated January 8, 2020, is addressed to the Chairman of the Board of Directors of a bank in Cairo, Egypt. It refers to an initiative regarding legal entities, whether legal action has been taken or not, with doubtful or bad debts (creditworthiness categories 9 and 10) and a debt balance of less than 10 million Egyptian pounds. The Central Bank of Egypt has decided to amend certain terms of the initiative, including extending its validity until December 31, 2020. The letter also emphasizes the importance of conducting credit studies for customers, avoiding excessive personal guarantees and collateral, and refraining from legal action unless fraud is proven.

Egypt

Central Bank of Egypt

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