Regulatory Alerts2021-12-14
Circular dated December 14, 2021 regarding the temporary amendment to the treatment of non-performing loans for small and medium-sized companies in accordance with the instructions of International Financial Reporting Standard No. 9.
In light of the ongoing impact of the COVID-19 crisis on various economic sectors, especially small and medium-sized enterprises (SMEs), the Central Bank of Egypt has decided to implement several measures to alleviate the burden on these businesses and help them continue their operations, production, and employment maintenance. These measures include extending the period for classifying customers in the third stage of debt repayment to 180 days, promoting customers from the third to the second stage if their dues are less than 180 days, and emphasizing the need for banks to restructure credit facilities for customers after assessing their financial position and cash flows. These measures will be in effect for 18 months from the date of the letter.