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The Central Bank of Egypt answered a number of questions of banks operating in the local market regarding the initiative to postpone the credit liabilities for customers for a period of six months, the most prominent of which was the cost to the customer if he benefited from the benefit-delay initiative for a period of 6 months.
The Central Bank, in an official letter issued today, Sunday, clarified the details of what it called “the main points of the questions it received from the banks during the last days”, saying that the initiative includes credit entitlements contained in the instructions for all the amounts due for all credit facilities, whether short-term facilities or Current or future loan installments in addition to returns, so that all customer entitlements and payment schedules are automatically posted from the beginning of the date of issuance of the instructions and for a period of six months with notifying customers of any available means of communication.
The «Central Bank» indicated that the instructions apply to all clients, whether regular or unregulated, individuals and institutions, including financial leasing companies, real estate financing, factoring companies, medium and small companies, and include the facilities entitlements granted in all types of guarantees, as well as clients of initiatives issued by the Central Bank of Egypt.
The Central Bank emphasized that the facilities of individuals include consumer loans, which are personal loans, credit cards, loans for the purpose of purchasing personal use cars, and real estate loans for personal housing. The instructions apply to new credit facilities that were granted as of the date of issuance of instructions.
The central stressed that the banks commit not to impose any returns and delay commissions on postponement, and only the interest rate applied to the loans is calculated according to the contractor before issuance of the instructions, provided that the customer is informed of the additional cost resulting from increasing the loan period so that interest is calculated on the 6-year period Months added without delay fines.
The «Central» explained that in the event that the customer wants not to bear the interest value for the additional 6-month period and not benefit from the delay, it is the duty of the bank to comply with the customer’s request.
It is noteworthy that the Central Bank issued the periodic book issued on March 15, 2020 regarding the precautionary measures to be taken to counter the effects of the Corona virus, and the appendix issued on March 16, 2020 regarding the postponement of customer credit liabilities for a period of 6 months with no additional returns or fines applied to the deferred payment.