The Central Bank stated that the credit evaluation of companies and individuals affected by the Corona virus will not be affected negatively if their installments are postponed for a period of six months, stressing that the financial support program does not apply to loans due to the government or its related entities or non-residents of the country.
In detail, the central bank revealed yesterday the mechanism of implementing the financial support plan provided to banks with a value of 100 billion dirhams, stressing in the mechanism that banks and financing companies must postpone the installments of companies and individuals affected by the Corona virus for a period of six months, asking them In coordination with the Union for Credit Information, to ensure that the credit risk files for those affected are not affected negatively if they benefit from the program.
The Central Bank of Egypt detailed how to put the financial support plan into practice through specific technical points.
He said in a circular he sent yesterday to the banks, and the Emirates Today obtained a copy of it, that it is permissible to extend the maturity of these loans during the exemption period and payment schedules and resume them as usual after the expiry of the period of the validity of the temporary relief.
The Central Bank recommended banks and finance companies in the circular to provide additional services, such as financing at discounted rates during the relief period for private sector companies, small and medium enterprises and individuals, including, but not limited to, granting new lines of credit, rescheduling loans, and reducing fees And commissions.
He stressed that the banks may not impose any fees, interest or fines on clients who receive an exemption under the financial support plan, and that they should prepare a list of beneficiaries, and not try to use financial support provisions for clients not affected by the Corona virus or government entities.
In his circular, Al-Markazi indicated that the plan was designed to contain the repercussions of the Corona virus, as banks are expected to provide facilities regarding the payment of financing premiums to the private sector, SMEs and individuals directly affected, stressing that this matter does not apply to loans owed to Governmental entities, related entities, or non-residents.
The Central Bank asked banks and finance companies to facilitate lending operations and specify expectations and actions to be taken according to the plan, stressing that the work of the planned plan and its details start immediately until September 2020.
Providing additional services such as financing at reduced rates during the relief period for private sector companies and individuals.