The Central Bank of Egypt (CBE) issued on Sunday a detailed note on its initiative to postpone loan installments for a period of six months.
CBE explained that the initiative includes all credit facilities and payment schedules were automatically postponed starting from the date of issuing the instructions for a period of six months. Clients are notified through different communication means.
It added that the initiative applies to all customers, whether regular or irregular individuals and institutions, including financial leasing, mortgage finance, factoring, and small and medium enterprises (SMEs). It also includes the facilities entitlements granted in all types of guarantees. Initiatives issued earlier by CBE also apply.
The CBE pointed out that the initiative also includes consumer loans, which are personal loans, credit cards, and car loans, in addition to loans for personal housing.
The CBE explained that the new instructions do not apply to loans that were granted as of the date of issuance of the instructions.
The CBE stressed the banks’ commitment not to impose any delay charges or commissions, and only count the interest applied to the loans in accordance with the contracted pricing mechanism at the time the instructions were issued, provided that the client is informed of the additional cost to be incurred and the consequence of the delay.
The CBE confirmed that in case the client does not wish to benefit from the delay or incur any additional cost resulting from it, his request will be complied with.