The Central Bank said – in a report issued today, Sunday, that the beginning of these procedures and decisions was in the middle of last March, with a decision to reduce interest rates by 3% to stimulate the economy to grow in light of global developments and conditions, as an exceptional measure to support economic activity in all its sectors.
He explained that the second of these measures is to postpone all credit entitlements for institutional and individual clients, which include consumer loans, real estate loans for personal housing, and SME loans for a period of 6 months, with no additional returns and fines applied to late payment.
The Central pointed out that the third measures he had taken included measures to reduce cash transactions and facilitate the use of electronic payment methods and tools, with the cancellation of fees and commissions applied at points of sale and withdrawals from ATMs and electronic wallets for a period of 6 months, while exempting local transfers in the Egyptian pound for a period of 3 months from All commissions and related expenses in order to limit cash transactions, as they may incur a risk to public health at the present time.
It also included issuing some exceptions for the use of electronic payment methods and tools in order to facilitate the citizens, including adjusting the maximum limits for mobile phone accounts and prepaid cards, opening bank and internet mobile accounts for existing bank customers using the data previously registered with the bank and applying procedures for identifying customers in an electronic way for clients The new bank and the issuance of electronic wallets, as well as prepaid cards for free for a period of 6 months, and setting a daily limit for withdrawals and deposits in bank branches for individuals in the amount of 50 thousand pounds, and the amount of 20 thousand pounds for withdrawals The deposit of ATM machines and so for a temporary period.
The fourth measure by the Central to support the economy in the face of Corona was to provide the necessary financing to finance the import of strategic commodities and support the most affected sectors and companies, as he instructed the banks to immediately provide the necessary credit limits to meet financing the import operations of basic and strategic commodities and in particular food commodities to cover the needs of Markets, study and follow-up of sectors most affected by the spread of the virus, develop plans to support the companies operating in it, and provide the credit limits necessary to finance the working capital, in particular, the salaries of employees of companies.
The Central pointed out that the fifth of these measures related to adjusting the rate of return on the initiatives of the Central Bank, in light of the decisions issued by the Monetary Policy Committee to reduce the basic interest rates at the Central Bank, where the rate of return applied to the following initiatives has been modified to become 8% decreasing instead of 10%,
It included real estate financing initiatives for middle-income, the private industrial initiative, the agricultural sector, and the tourism sector support initiative to finance the replacement and refurbishment of hotels to establish, replace and renew residence hotels, floating hotels, tourism transport fleets, and financing working capital and salaries.
The Central Bank allocated the sixth measure to support the tourism sector, where it announced the initiative to replace and renew residence hotels, floating hotels and tourism transportation fleets, and increase the amount allocated to the initiative to become 50 billion pounds instead of 5 billion pounds at a 8% rate of return, and for a maximum period of 15 years, and to grant credit facilities to be paid At a maximum period of two years in addition to a grace period of no more than 6 months to pay salaries, wages, and obligations of existing suppliers and maintenance work for tourism activities, and cautioned that troubled customers can benefit from the initiative if they settle within the framework of the central bank’s initiatives Especially for irregular customers.
The Central Bank announced an initiative for unregulated clients of legal persons operating in the tourism sector, applicable to companies operating in the tourism sector whose debts amount to 10 million pounds or more without marginal returns, whether taken or not in relation to judicial procedures, and also included the removal from the ban lists immediately upon agreement On the terms of payment and waiver of all cases that are circulated and exchanged with the courts.
He also proposed an initiative to postpone the entitlements of companies operating in the tourism sector and extend the period of validity of the tourism sector support initiative for an additional year to end at the end of December 2020 during which any requests for deferral of bank entitlements for a maximum period of 3 years are accepted, with the extension of the validity period of the retail loans initiative for workers in the tourism sector for a period of A year to end at the end of December 2020, during which banks are allowed to post the loan customer benefits for consumer purposes and real estate loans for personal housing for an additional 6 months from their due date, for regular customers only according to the Center September 30, 2019 working in the tourism sector with p Blood count delay benefits for that period.
The Central Bank devoted the seventh measure to unregulated clients from legal persons (companies) for all sectors and applies to companies, whether taken or not in respect of them, judicial procedures from irregular customers with doubtful and bad debts whose debts balance is less than 10 million pounds (without marginal returns) , Indicating that in the event that the customer pays in cash or in kind a portion of the debt balance in accordance with its cash flows provided that the deletion is made from the lists of prohibitions and the waiver of all issues and exchanged with the courts and the liberalization of all guarantees for that debt.
In the eighth measure, the Central Bank also launched an initiative for clients who are not organized from natural persons (individuals), so that they apply to individual customers who are not organized until September 30, 2019, whose total debts (without marginal returns) in all banks are less than one million pounds (without credit cards) and are carried out according to That initiative relinquishes all the issues circulated and exchanged between the bank and the customer in the courts immediately upon agreeing payment terms and canceling the ban on dealing with them and the liberalization of guarantees and mortgages for these debts when the customer pays 50% of the net debt balance without marginal returns until 31 pm Rs 2021.
The Central Bank stated that the ninth measure allowed the industrial private sector and the agricultural sector an amount of 100 billion pounds through banks at an annual rate of 8% decreasing to finance companies in the industrial sector and companies working in the agricultural field, agricultural production and manufacturing, including export terminals and the packing of agricultural commodities, refrigerators and others, and wealth Fish, poultry and regular animals whose annual turnover amounts to 50 million pounds, and the initiative is used to grant credit facilities to finance the purchase of raw materials, production requirements, machines, equipment, or production lines (capital funds) and those who benefit from the defaulters The carrying out of the settlement and with the continuing validity of the initiative of the Central Bank to finance small-volume business companies / annual revenues of one million pounds, even less than 50 million pounds at a price return of 5%.
The tenth procedure was in favor of real estate financing for middle-income people, as the central bank allocated 50 billion pounds through banks, at an 8% rate of return calculated on a declining basis for a maximum period of 20 years, under specified conditions.
The bank explained that the eleventh measure enabled banks to perform their tasks in the best way under the exceptional circumstances the world is currently witnessing, where some exceptions were allowed that included not limiting the maximum number of times a single board member participated via video or phone and not requiring the presence of a majority of board members The administration is physically present, provided that prior approval is obtained from the monitoring and supervision sector of the Central Bank, and the twelfth procedure in which the Central Bank canceled the blacklist of institutional clients and canceled negative lists of individual customers who obtained loans for consumer purposes with Reducing the disclosure periods of historical information to customers after payment and eliminating the ban on dealing with them.
The thirteenth procedure included a one-year exemption from banks from calculating the requirement to increase the regulatory capital in order to meet the risks of the credit position of the largest 50 customers and the parties associated with it in the bank for 50% of the bank’s credit portfolio, and the fourteenth procedure allowed banks to issue short quarterly financial statements with the exclusion The effect of delaying repayment of loans for a period of 6 months on budgets and is not considered an indication of customers defaulting.
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