Circular dated March 22, 2020 regarding clarifications on postponing customers' credit dues for 6 months

Cairo: March 22, 2020

Dear Sir, Chairman of the Board,

Greetings,

With reference to the circular dated March 15, 2020, regarding the precautionary measures to be taken to face the effects of the coronavirus, and the addendum dated March 16, 2020, regarding the postponement of customers' credit dues for a period of 6 months without applying additional returns or late fees on the postponement, please find attached a memorandum of the most important points raised by banks regarding the implementation of the aforementioned instructions.

This is with the emphasis that in case there are any inquiries from the Bank regarding the above, it is required to provide the Supervision and Control Sector in writing subsequently on the website of the Central Bank of Egypt to respond to them.

Please accept our highest respect,

Tarek Amer

Key Points Regarding the Postponement of Customers' Credit Dues for Six Months

1. The credit dues mentioned in the instructions are all amounts due for payment for all credit facilities, whether short-term facilities, current or future loan installments, in addition to returns, so that all customers' dues and repayment schedules are automatically deferred from the date of issuance of the instructions for a period of six months with notification to customers by any of the available communication means.

2. The instructions apply to all customers, whether regular or irregular, individuals or institutions, including financial leasing companies, real estate financing companies, factoring companies, and small and medium-sized enterprises, and include dues of facilities granted with all types of guarantees, as well as customers of initiatives issued by the Central Bank of Egypt.

3. The facilities for individuals include the following:
   a. Consumer loans, which are personal loans, credit cards, and loans for purchasing cars for personal use. b. Residential real estate loans for personal housing.

4. The instructions do not apply to new credit facilities granted from the date of issuance of the instructions.

5. The bank is committed to not imposing any interest or late fees on the postponement, and only the interest rate applied to loans according to the contract before the issuance of the instructions is calculated, with the customer being informed of the additional cost resulting from the deferral mechanism that the customer will bear.

6. In case the customer does not wish to benefit from the postponement or bear any additional cost resulting from it, his request shall be complied with.