The Agricultural Bank of Egypt announced a new initiative to settle about EGP 4bn of debt in the bank, benefiting more than 45,000 customers.
This comes within the framework of the Central Bank of Egypt’s directives to mitigate the negative effects of the coronavirus pandemic on small customers and small and micro enterprises and to correct their conditions to enable them to deal again with the banking system, and return them to work and production.
Under this initiative, the entire debts of defaulting individuals from retail banking customers who have debts of up to EGP 100,000 in November 2021 will be canceled, with a total debts of about EGP 400m benefiting about 7,500 customers.
The bank’s previous initiative regarding the final cancellation of the entire indebtedness for defaulting customers whose debts amount to EGP 25,000 in November 2021 will be completed, and all accumulated returns after default will be dropped.
The total beneficiaries included in this segment of clients amount to about 13,000 clients, most of whom are small farmers, and the total debts that will be dropped from these clients amount to about EGP 76m.
With regard to deceased defaulting clients whose loans were not repaid until last November, their debts will be completely forgiven and without a maximum indebtedness limit. The total debts that will be dropped from these clients will be about EGP 64m in favor of about 1,000 clients.
Under the initiative, 50% of the debts of defaulting clients for individuals and companies are also dropped, up to EGP 10m provided that the client pays 50% of the original indebtedness, whether in one payment or in installments. The total beneficiaries in this segment of customers has more than 24,000 customers, and their total debts amount to about EGP 3.4bn.
