Circular dated April 16, 2020 regarding the mechanism for paying interest calculated during the credit maturity period

Cairo: April 16, 2020

Dear Mr. / Chairman of the Board,

Greetings,

With reference to the circular letter issued on March 15, 2020, regarding the precautionary measures to be taken to face the effects of the novel coronavirus, and its subsequent circular letters, the latest of which is dated March 22, 2020, which all included the requirement for banks to postpone customers' maturities automatically for 6 months (unless the customer requests otherwise), without applying late interest or additional penalties for late payment, and in light of the inquiries received regarding the mechanism for paying the value of the interest calculated during the deferral period, and noting the disparity in application between banks,

I wish to inform you that when applying the above, the value of the interest accrued during the deferral period (amounting to 6 months) must be capitalized on the remaining amount of the facility, to be paid with the installments during the new facility period, in proportion to the customers' ability to pay, while emphasizing the non-demand of the deferred interest value from customers with the first installment after the deferral period.

Please be so kind as to take the necessary steps to fully comply with the above and inform customers of the cost and the method of payment.

Accept my highest regards,

Gamal Naguib