Regulatory Alerts2020-03-22
Added · Updated
Circular dated March 22, 2020 regarding clarifications on postponing customers' credit dues for 6 months
The Central Bank of Egypt clarifies that the six-month postponement of credit dues applies to all payment obligations for all facilities, including short-term facilities, current or future loan installments, and interest, with automatic deferral for all customers regardless of regularity or entity type. The directive prohibits the imposition of any interest or late fees on the deferred amounts, requiring banks to calculate interest based on pre-circular rates and inform customers of any additional costs resulting from the deferral. The postponement does not apply to new credit facilities granted from the date of the circular, and banks must respect a customer's request to opt out of the deferral or any associated additional costs.