Regulatory Alerts2020-03-16
Circular dated March 16, 2020 regarding the Irregular Customers of Natural Individuals Initiative
In March 2020, the Governor and Chair of the Central Bank of Egypt outlined a new initiative for unsecured loans to individuals who are not overdue to banks. This initiative aims to help those affected by the pandemic, allowing them to transact with the financial system again and improve their purchasing power. The initiative requires participants to have outstanding debts less than 1 million Egyptian pounds (not including credit card debt or pending lawsuits). In addition: - All claims and disputes related to the client are cleared upon agreement with the bank concerned. - Clients who take a cash loan or cash overdraft will receive a discount of up to 50% on their unsecured loans, excluding credit card debts. This initiative runs for one year from the date of the 50% loan being taken as historical data only. The initiative is scheduled to run until 31st March 2021 and will be applied to clients who had previously taken a loan before September 30, 2019. The Bank requests these individuals to consider applying for the initiative, provided they comply with additional instructions, and ensure compliance in accordance with applicable laws."