Chapter Five: Initiatives for Defaulting Customers

Section Three: Initiative for Irregular Customers from Natural Individuals

With reference to the initiatives recently issued by the Central Bank of Egypt regarding irregular customers in payment from legal persons, and in continuation of the Board of Directors' decision for those initiatives, the Central Bank of Egypt has issued a new initiative for irregular customers in payment from natural individuals, with the aim of relieving them of their default to enable them to deal with the banking system again, thereby contributing to raising their purchasing power and enhancing local demand, as follows:

The initiative applies to natural persons who are irregular in payment, whose total outstanding balances of their irregular debts with the banking system are less than one million pounds (excluding credit card balances and accrued interest), according to the center on September 30, 2019, whether legal proceedings have been taken against them or not, based on the report available at the Egyptian Credit Information Company (Score-I) prepared for this purpose,

And the following is done pursuant to it:

1. Waiver of all pending and exchanged cases at courts immediately upon the customer's agreement with the dealing bank on the payment terms.

2. When the customer pays cash or in kind (in case the bank accepts in-kind payment) 50% of the net balance of the debt without accrued interest (the debt balance excluding cash collateral and the like), the following is done:

   a. Removal from the blacklist lists in the credit registration system at the Central Bank of Egypt and the Egyptian Credit Information Company (Score-I), and disclosing these customers as initiative customers for a period of one year from the date of paying the 50% as historical information only.

   b. The transaction ban does not apply to these customers regarding that debt.

   c. Release of non-cash guarantees and the like, and mortgages specific to that debt.

3. The initiative is applied from its date until March 31, 2021.

4. The same conditions of the initiative are applied to customers who paid before September 30, 2019.