The Central Bank of Egypt (CBE) instructed banks operating in Egypt to increase bank financing to help keep companies, factories and SMEs in business and preserve jobs in the face of rising international prices.

Central Bank Governor Tarek Amer stressed the need for banks to coordinate with the CBE’s banking supervision sector as soon as possible to review the rules for classifying defaulting clients to avoid withdrawal/denial of financing, and end judicial disputes on companies and around 29,000 individual loans.

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Amer chaired a meeting with several leaders in the finance industry, risks and legal departments in banks, which is part of a series of meetings that the Central Bank started with companies in January 2020 to solve their financial problems.

The CBE governor also encouraged bank heads to use their power and influence to make decisions that take into account the general interest of the Egyptian economy, not only the bank’s interests.

The pandemic’s effects continue, and therefore the classification of customers must be taken into account to ensure their financial positions are not disturbed, explained Amer.

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The rules of customer marginalization are also being reviewed to encourage banks to finance them in case of default so as not to worsen their financial situation, according to the recommendations of the Central Bank Governor.