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Tuesday, 12 February 2019

CBE to relaunch its EGP 16.8 bn debt relief program

The CBE is looking likely to relaunch its EGP 16.8 bn debt relief program by no later than April, sources familiar with the matter said, according to Al Mal. The program was launched by the central bank between June-December 2018 and was designed have state-owned banks waive EGP 16.8 bn-worth of interest payments on non-performing loans provided the struggling borrowers repay their outstanding principal amounts. The CBE targeted an estimated 3.5k companies and 337k individuals in the first phase. It failed, however, to attract the target number of beneficiaries due primarily to its short duration and requiring debtors to make one-time principal repayments. The state-owned banks taking part in the program have suggested a longer duration for the program for this time around, covering credit card customers and providing more flexible principal repayment terms.

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