CBE to unleash an initiative proposing debt relief for SMEs: governor

Wednesday 16 May 2018 06:24 PM


By Sayed Badr
The Central Bank of Egypt is poised to unleash an initiative proposing a debt relief for 107 clients defaulting  on debt interests as well as  fines of disbursement delays and legal claims, according to CBE governor Tarek Amer.
" The Initiative aims at reducing the debt burden through allowing clients to repay the principle of debts in cash without having to pay out interest amounts and  fines, as well as dropping lawsuits filed against the indebted" Amer told Al-Mal newspaper.
The initiative targets 5k factories and 27k clients at the Egyptian Agricultural Bank and 75k retail banking clients, he added.
The initiative was scheduled to be unleashed this week, but deputy CBE Gamal Negm said that it was postponed to next week because several banks expressed readiness to join it.
Regarding the CBE's initiative proposing financing small and medium-sized enterprises at lower interest rates, Amer said that funds injected so far into the initiative have jumped to EGP100bn.
" Although world interest rates are rising, treasury notes issued by the Egyptian government are still  favored by foreign investors," he explained, adding that local interest rates remains attractive for depositors and that gains reaped by holders of the 20% saving certificates that were replaced by lower interest rates later on have never left the Egyptian banks.