Regulatory Alerts2020-09-14
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Circular Letter Dated September 14, 2020 Regarding Postponement of Customers' Credit Dues
The Central Bank of Egypt requires banks to conduct a detailed review of existing credit facilities and customer cash flows to determine appropriate measures aligned with repayment capacity without pressuring liquidity. Banks must restructure customer debts through options such as extending credit terms, rescheduling installments without penalties, capitalizing returns, or granting grace periods, particularly for affected entities. Additionally, banks must adhere to creditworthiness assessment guidelines and IFRS 9 standards, noting that regularized restructured debt without financial difficulties is not a credit risk indicator, and must perform stress tests to plan for potential losses.
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