Regulatory Alerts2024-07-01 | CBE7.4.2.3Added · Updated
CBE Regulation Book 7.4.2.3 - Instructions For Applying The International Standard During The Coronavirus Crisis
The Central Bank of Egypt mandates that banks exclude the 6-month credit deferral period granted to customers during the coronavirus crisis from the calculation of the cessation of payment period and as an indicator of significant increase in credit risk. Banks are required to review their Expected Credit Loss (ECL) models, verify the integrity of their information systems, and submit an audit report on these reviews within one month. Additionally, the Central Bank temporarily modifies the classification of Small and Medium Enterprises (SMEs) by extending the 180-day threshold for Stage 3 classification, phasing out this exception by December 2025, and extending the provision for upgrading customers from Stage 3 to Stage 2. Banks must also upgrade specific SMEs that defaulted due to the crisis from Stage 3 to Stage 2 and restructure their facilities based on current financial positions.
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