Circular dated March 16, 2020 regarding the Irregular Customers of Natural Individuals Initiative

Cairo on March 16, 2020

Dear Chairman of the Board of Directors of the Bank,

Greetings,

With reference to the initiatives recently issued by the Central Bank of Egypt regarding irregular customers among legal entities, and in continuation of those initiatives, the Board of Directors of the Central Bank has decided to issue a new initiative for irregular customers among natural persons, with the aim of relieving them of their difficulties to enable them to deal with the banking system again, thereby contributing to raising their purchasing power and strengthening domestic demand, as follows:

The initiative applies to natural persons who are irregular in repayment, whose total irregular debt balances with the banking system are less than one million EGP (excluding credit card balances and penal interest), according to the data available at the Egyptian Credit Bureau (Score-I) as of September 30, 2019, whether legal proceedings have been taken against them or not, based on the report for this purpose. The following shall be implemented:

1. Waiver of all pending and exchanged cases in courts immediately upon the customer's agreement with their bank on repayment terms.

2. When the customer pays in cash or in kind (in case the bank accepts in-kind repayment) 50% of the net debt balance without penal interest (debt balance excluding cash collateral and its equivalent), the following shall occur:

   a. Removal from the blacklists in the credit registration system of the Central Bank of Egypt and the Egyptian Credit Bureau (Score-I), and disclosure of these customers as initiative customers for a period of one year from the date of payment of the 50% as historical information only.

   b. The ban on dealing with these customers shall not apply to them regarding that specific debt.

   c. Release of non-cash collateral and its equivalent, and mortgages related to that debt.

3. The initiative shall be effective from its date until March 31, 2021.

4. The same conditions of the initiative shall apply to customers who settled their debts before September 30, 2019.

Please be kind enough to alert regarding the necessary actions to implement the aforementioned initiative, and ensure notifying the customers who fall under the above provisions via registered letters in addition to other communication means, while observing compliance with the provisions of the law.

Accept our highest respect,

Tarek Amer