The Central Bank of Egypt (CBE) has issued new regulations regarding the six-month deferral of loans due to the ongoing coronavirus (COVID-19) pandemic.
In March, the CBE issued regulations due to the coronavirus oubtreak allowing borrowers to defer paying instalments on bank loans for a period of six months.
In a statement on Thursday, the CBE said that banks should only allow interest to accrue on the remaining amount of the loan left to pay, rather than that of the principal loan.
Borrowers will also not have to pay any interest on the loans for the period of deferral, should they decide to pause the instalment payments. At the end of the six-month grace period, the CBE has outlined that clients will not have to pay the deferred instalments in one go.
The CBE statement has sought to clear up misunderstandings on how the period of deferral will pan out for borrowers.