Regulatory Alerts2024-07-01
Circular dated July 1, 2024 regarding the gradual cancellation of the treatment of non-performing loans for small and medium enterprises in accordance with the instructions of IFRS No. 9
In a letter dated July 1, 2024, the Chairman of the Board of Directors of a bank addresses the gradual phasing out of an exception for classifying Small and Medium Enterprises (SMEs) customers in the third stage of loan repayment over an 18-month period until December 2025. This decision is based on the continued impact of various crises on the economy and the Central Bank of Egypt's commitment to supporting the SME sector in meeting its financial obligations, maintaining operations and production, and preserving employment. The letter also extends the provision for upgrading customers from the third to the second stage of repayment until December 2025 if all quantitative and qualitative elements are met.