Regulatory Alerts2024-03-04 | CBE4.11Added · Updated
CBE Regulation Book 4.11 - The Regulatory Framework For Writing Off Irregular Debts 11
The Central Bank of Egypt mandates that banks incorporate specific rules for writing off irregular debts into their internal policies, requiring full liquidation of cash-backed collateral upon default and writing off unsecured irregular facilities after a maximum of three years if no restructuring occurs. Banks must obtain Board of Directors approval for write-offs, maintain statistical records of written-off debts for analysis, and dedicate efforts to debt recovery during the write-off period. The regulation provides an 18-month transition period from the issuance date for banks to review and write off existing irregular facilities in compliance with these new standards.