An official source at the Central Bank of Egypt (CBE) revealed that debts of EGP 9.9bn will be waived for some 220,000 people under the initiative to settle debts of clients who are not paying regularly and whose loans are less than EGP 1m.
In statements to the Middle East News Agency, the source said that the number of those covered by the initiative is about 940,000, and the total amount of their debts reached EGP 11.308bn, and the value of marginal returns reaches EGP 4.25bn.
The CBE announced yesterday a new initiative for defaulting natural individuals to enable them to deal again with the banking system, which contributes to raising their purchasing power and enhancing domestic demand.
The CBE said in its instructions to banks that the initiative applies to individuals who are paying irregularly and whose debts are less than EGP 1m (without credit card balances and marginal returns), according to the CBE on 30 September 2019, whether or not judicial action was taken against them.
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. These clients will be announced as clients of the initiative for one year. The CBE noted that the initiative will be effective as of now until the end of March 2021, with the same conditions of the initiative being applied to customers who made payments before 30 September 2019.