CBE Issues Decisions to Facilitate Regulatory Requirements for SMEs

The Board of Directors of the Central Bank of Egypt (CBE) issued a package of decisions aimed at supporting small and medium-sized enterprises (SMEs) to help support them continue operation, preserving employment and providing the liquidity required to continue the production process.

The Central Bank said in a statement on Tuesday that the decisions facilitates some of the regulatory requirements for defaulting SMEs, in light of the repercussions of the coronavirus crisis, which is still ongoing.

This includes extending the period of defaulting customers, and the need for banks to restructure the credit facilities for them; according to their cash flows and their ability to pay while offering alternatives that would support them, such as increasing the duration of the facilities and restructuring the outstanding installments as well as granting them appropriate grace periods.

In a related context, it was decided to establish a supervisory framework for non-performing debts in the event of their irregularity, and establishing a specific time frame during which banks will execute irregular facilities, as well as stipulating the procedures to be taken in cases of scheduling and settlement of irregular customers.

Finally, the decision confirmed the necessity of presenting the position of the irregular facilities on an ongoing basis to the boards of directors of banks and taking the necessary measures regarding their follow-up.

The foregoing comes in light of a package of measures taken to achieve the desired growth rates, and to support small and medium enterprises in a way that supports the national economy.