The Central Bank of Egypt Credit Registry Amendments
Within the measures taken by the Egyptian Government regarding the full operation of companies and factories to promote production and growth rates to curb the effect of the Coronavirus “COVID-19″, and as a part of the new initiatives taken by the Central Bank of Egypt “CBE” to support companies and customers solving their outstanding issues with the banking sector, on 5th April 2020, the CBE issued a new decree no. 702/2020, the following is a summary of what the new decree included:
- Removing some companies from the CBE’s blacklist and some individuals from the CBE’s negative list I-Score’s as well.
- Lifting the ban on irregular customers to deal again with the banking sector, which means that nearly 8000 companies and over 100,000 citizens would benefit from such decree.
- Reducing the disclosure period of such customers to six months or one year after the full settlement of their due debts. Previously, such period was maybe extended to five years or more in order to remove their names from the negative lists and lift the ban on their dealing with the banking sector. Such shall not include customers who have fully settled their due debts and their outstanding period exceeded six months in the disclosure reports, which means that more than 4000 companies and 220,000 citizens would benefit from such decree.
- Canceling the negative list of irregular customers who got loans for consumer purposes, as stated in the decree issued on 26th April 2005.
- Notifying irregular customers one-month prior to listing them in the negative lists, in accordance with the categories and names mentioned in the decree.
According to the above:
- All banks shall reconcile its status and filter irregular customers database listed in the CBE credit registry system and I-Score system within a period of three months, effective from the decree date;
- Customers whose outstanding balances are expenses, commissions, and accrued dues only, or who are mistakenly listed by banks are excluded;
- Exclusively and for one time only, customers whose debts are less than 1000 EGP shall be removed from the negative lists.
Thus, customers who are interested in getting personal or consumer loans or to complete their activities and promote their products can benefit from such decree to refinance their statuses.
Finally, the CBE stressed that it will not hesitate to take all necessary decrees and initiatives to support the national economy, achieve economic reform, promote production and motivate customers to continue normally their economic activities.