It includes restructuring credit facilities and loans for SMEs, where banks are to extend the grace period for repayment and reschedule installment due dates according to their affordability
The Central Bank of Egypt issued a new incentive package to support small and medium-sized enterprises (SMEs) with the aim to alleviate the COVID-19 pandemic’s economic impact on their businesses.
The incentives are aimed at supporting SMEs, enabling them to continue working and producing, preserving employment and providing the liquidity required to continue the production process.
It includes restructuring credit facilities and loans for SMEs, where banks are to extend the grace period for repayment and reschedule installment due dates according to their affordability.
In a statement, the CBE noted that the decision came as part of state directives to improve efforts to support troubled customers reintegrate them into the banking sector.
The package includes extending the amount of time required before classifying a customer as defaulting, as well as the establishment of a supervisory framework on non-performing debts by banks.
The CBE’s instructions included methods on dealing with credit facilities covered by cash guarantees and, in the event of defaulting or lateness, establishing a specific time frame during which banks will execute irregular facilities, as well as stipulating the procedures to be taken in cases of scheduling and settlement of irregular customers.
Since the onset of the pandemic, the CBE has taken several procedures to support all economic sectors, including SMEs, tourism, industry, and agriculture.
