Egypt’s Central Bank issues new procedures for banks' financial statements

Doaa A.Moneim , Tuesday 5 May 2020

The Egyptian Central Bank offices in Cairo, Egypt (Reuters)

The Central Bank of Egypt (CBE) has decided to allow all banks to issue briefed quarterly financial statements in accordance with the Egyptian counting measure number 30 that has been modified in 2015 regarding the banks’ circular financial statements.

In a statement issued on Tuesday, CBE said that banks are committed to completed annual financial statements by the end of 2020 and the end of June 2021, according to the system applied in each bank.

The CBE also expounded that the six-month credit accounts suspension will not be calculated in the period of repaying delayed dues and will not be considered as a core index of evaluating banks’ credit risk level, without prejudicing the banks responsibility of assessing their credit portfolios in order to keep their quality, in addition to assessing their clients repaying abilities.

According the statement, the procedures are in line with the measures the CBE has taken to curb COVID-19’s impact on Egypt’s banking and monetary systems.

On 15 March, the CBE launched a number of facilities to make clients’ financial operations easier, including the postponement of payments on all credit entitlements as of 16 March, including short-term facilities, future and current loan installments, and proceeds.

The facility has been applicable to regular and non-regular clients, individuals and corporations alike, including finance leasing, real estate finance, factoring, and small and medium sized enterprises, in addition to beneficiaries of CBE initiatives.

Under the CBE’s facility, consumer loans, including personal loans, credit cards, loans for buying cars for personal use, and real estate loans for personal housing are covered, while new credit facilities applied after 16 March are excluded with no proceeds or delay commission to be imposed due to postponement.

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