The Central Bank of Egypt (CBE) has decided to extend its initiatives to support defaulters, whether individuals or tourism companies, for a further six months.
According to a CBE statement on Monday, this means that the two initiatives will now come to an end on 30 June 2021. The extension has been put in place to achieve the desired goals, and provide more support to the largest number possible of defaulting clients.
The initiatives cover individuals with debts of less than EGP 10m, without marginalised returns, including those with judicial procedures taken against them for this reason.
According to this initiative, the defaulter will be removed from banks’ black lists, and all lawsuits against them in courts are waived, in case he pays 50% or more of the debt. This is determined according to cash flows and the study of the bank.
The initiative has also been extended for those working in the tourism sector and who have debts of EGP 10m or more, without marginalised returns, whether or not they are facing legal procedures in this regard.
This also removes them from black lists, and waives the lawsuits against them in courts, on the condition that the client pays 50% or more of the debt.
The extension to the initiatives implements the directives of President Abdel Fattah Al-Sisi, which were given for the government and the CBE to put in place. They act as a rescue package to support the economy, mitigate the repercussions of the novel coronavirus (COVID-19) pandemic, and facilitate procedures for defaulting clients.
They also allow some clients to take up their dealings with banks again, in addition to re-integrating them into economic activity.
Those clients would be allowed to obtain new credit facilities and increase their production capacity, which contribute to revitalising the national economy. As part of this, the initiatives aim to preserve the gains from economic reform, especially in light of the continuing repercussions of the pandemic