2021-12-14

A circular dated December 14, 2021 regarding the regulatory framework for writing off non-performing debts

In a letter dated December 14, 2021, the Central Bank of Egypt instructed banks to implement stricter policies for managing and writing off non-performing loans to align with international best practices and improve the asset quality of the banking sector. The key directives include ensuring internal policies have provisions for writing off non-performing loans within a maximum of 3 years, prioritizing the liquidation of cash-backed credit facilities upon payment delays, and requiring board approval for loan write-offs after a thorough review by the bank's risk committee. Banks are granted an 18-month grace period to align their practices with these instructions.

Egypt

Central Bank of Egypt

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