Cairo – Mubasher: The Central Bank of Egypt (CBE) ordered banks to extend the maturity date of all loans, including consumer, mortgage, and personal loans, for a period of six months.
No late payment fees will be applied over the mentioned six-month period, according to a statement late on Monday.
Moreover, the central bank launched a new initiative to shore up individuals with non-performing loans (NPLs) valued at less than EGP 1 million, excluding balances of credit cards and margin returns, as of 30 September 2019.
The initiative will be effective as of 31 March 2021.
Upon reaching an agreement with the borrower to pay in kind the value of 50% of the principal debt, the customer will be removed from the credit blacklist.
Meanwhile, the CBE's Monetary Policy Committee (MPC) delivered a surprise interest rate cut of 300 basis points (bps) during an emergency meeting.
These measures are in line with the government's efforts to support the Egyptian economy amid the rising concerns over the spread of the new coronavirus.