CBE Extends Default Clients' Initiative until June 30

The Central Bank of Egypt (CBE) decided on Sunday to extend the time frame of the default clients' initiative until June 30.

The initiative includes financially-strapped clients, whether or not judicial procedures have been taken against them, and clients whose debt balance is less than EGP 10 million at the end of September 2019, excluding their marginal returns.

CBE indicated in a statement that the extension period will also includes the initiative of legal persons operating in the tourism sector from irregular clients whose debts amount to EGP 10 million or more from the same bank.

The central bank pointed out that according to the two initiatives, clients will be removed from the blocking lists and all cases exchanged with the courts (upon agreement on the terms of payment) will be waived. Also, all guarantees related to the debt will be released, in the event that the customer provides 50% or more of the debt amount.

According to the initiative, all cases in courts are waived immediately upon the client’s agreement with the dealing bank on the terms of payment, provided that the customer makes a cash or in-kind payment of 50% of the net debt balance without marginal returns.

These clients will also be removed from black lists in credit registration system in the CBE and I-Score.  The CBE noted that the initiative will be effective as of now until the end of June 2021, with the same conditions of the initiative being applied to customers who made payments before 30 September 2019.