11:38 am
Sunday 22 March 2020
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I wrote – Manal Al-Masry:
The central bank issued a periodic book containing the main points regarding the application of the decision to postpone the payment of loan installments to clients for a period of 6 months.
The Central Attached a memorandum containing the most important points raised by the banks regarding the application of instructions for postponing the repayment of loans.
The Central Bank identified 6 key points for implementing the decision in banks operating in Egypt, as follows:
1- The credit entitlements stated in the instructions are all the amounts payable for all short-term credit facilities or current or future loan installments in addition to the returns, so that all the customer’s entitlements and payment schedule are automatically posted starting from the date of issuing instructions and for a period of 6 months from notifying customers of any means of communication Available.
2- Instructions apply to all clients, whether regular or irregular individuals and institutions, including financial leasing companies, real estate finance, 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.
3- Individual facilities include the following:
Consumer loans, which are personal loans, credit cards and loans for the purpose of purchasing cars for personal use.
Mortgage loans for personal housing.
4- The instructions do not apply to the new credit facilities granted as of the date of issuance of the instructions.
5- The bank is obligated not to impose any returns and commissions on delay on postponement. Only the rate of return applied to loans is calculated according to the contracted pricing mechanism prior to issuance of instructions, provided that the customer is informed of the additional cost that he will incur resulting from the postponement.
6- In the event that the customer does not wish to benefit from the delay or incur any additional cost resulting from the intention to comply with his request.
Also read:
Deputy Governor of the Central Bank of “Masrawy”: the delay of loan installments “automatically” 6 months
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