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Sunday, 23 August 2020

The CBE appears to be edging toward renewal of a six-month payment holiday for businesses most affected by covid-19

The CBE appears to be edging toward renewal of a six-month payment holiday for businesses most affected by covid-19. Commercial banks have finished drawing up a list of large corporate clients most affected by the pandemic at the request of the Central Bank of Egypt (CBE), Al Shorouk reports, quoting unnamed banking sources. Based on this shortlist, the CBE may renew a six-month payment holiday that is set to expire in September, the sources suggest. This is likely as long as the pandemic continues to take a toll on the local and global economies, especially on companies reliant on exports, the sources said.

Building materials companies and real estate developers are among those worst-hit by the pandemic, the sources said. Al Shorouk claims developers including Rooya and Palm Hills Development have recently got in touch with local banks to reschedule bns-worth of loan payments amid a steep slowdown in sales and a liquidity crunch. Building materials businesses, including cement and steel manufacturers, were also impacted by a recent government decision to suspend the issuance of new building licenses and are reporting a drop in profitability due to high energy costs, the sources added.

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