Regulatory Alerts2017-03-02
A circular dated March 1, 2017 regarding temporary facilities granted in foreign currencies
In a letter dated March 1, 2017, the Deputy Governor of the Central Bank of Egypt, Mr. Gamal Negm, addresses the Chairman of the Board of Directors of a bank regarding the meeting held on February 20, 2017, with the heads of banks and representatives of the Investors' Union present to discuss the status of temporary facilities granted to some clients in foreign currencies. The letter mentions that most of the companies with temporary facilities fall within a specific sales/business volume and owe less than a certain amount. The Central Bank proposes issuing guidelines for banks to study each company's case individually and make appropriate decisions, including allowing banks not to classify non-cooperative clients as non-performing and granting them a grace period.