Agricultural Bank of Egypt to settle debts

ArabFinance: Agricultural Bank of Egypt launched a new initiative to settle about EGP 4 billion of debt in the bank, benefiting more than 45,000 customers.

The decision follows the Central Bank of Egypts 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 the 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 total debts of about EGP 400 million benefiting about 7,500 customers.

Previously, the bank launched an 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 76 million.

As regards 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 64 million in favor of about 1,000 clients.

According to the initiative, around 50% of the debts of defaulting clients for individuals and companies are also dropped, up to EGP 10 million 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 have more than 24,000 customers, and their total debts amount to about EGP 3.4 billion.