The Central Bank of Egypt (CBE) board of directors has decided to abolish a blacklist of companies and individuals, as well as lift a ban on their dealing with banks. The move is aimed at clients who have not been regularly paying their debts, and would benefit approximately 8,000 companies and over 100,000 citizens.
This decision also includes reducing the disclosure periods for these clients after the payment is fully made to a period of six months and a period of one year, respectively. It would benefit more than 4,000 companies and 220,000 individuals.
The CBE granted banks three months from the decision date to reconcile their situation, and filter their databases.
Individuals would be able to take advantage of financing opportunities on personal or consumer loans, or complete their activities and return in a stronger position to the economic activity.
This decision comes in light of a package of measures taken at the state level, led by President Abdel Fattah Al-Sisi. It aims at allowing factories to restart in order to advance production and achieve the desired growth rates. This is in line with the CBE’s current trend to accommodate and support serious customers who wish to solve their problems with the banking sector. It is also an extension of initiatives related to clients with debts, dropping a large portion of them, sometimes by more than 50% of those debts, in addition to waiving marginal returns.
Banks are expected to give up nearly EGP 43.6mn, in case all customers applied to benefit from these initiatives.
The CBE stresses that in light of its monitoring of changes both locally and abroad, it will not hesitate to take all necessary measures to support the national economy, enhance the climate of mutual trust and complete economic reform.