Regulatory Alerts2021-12-14
Added · Updated
Circular dated December 14, 2021 regarding the regulatory framework for writing off non-performing debts
The Central Bank of Egypt mandates that banks incorporate specific rules for writing off non-performing debts into their internal policies, including adherence to IFRS 9 and credit assessment standards. Banks must liquidate cash-backed collateral upon default without exceeding the delinquency days threshold for non-performing classification, and must write off facilities after a maximum of three years if no restructuring or settlement occurs. Banks are granted an 18-month transition period to review and write off existing non-performing facilities, while continuing to track written-off debts in statistical records for recovery efforts and periodic reporting to the board of directors.
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