Agriculture bank settles debt of LE 1.4B

CAIRO – 27 March 2018: The Agriculture Bank of Egypt has processed the debt of 23,000 defaulters, which amounted to LE 1.4 billion ($79.26 million) until the end of February 2018, according to Chairman of the bank, al-Sayed al-Kosair.

Kosair clarified that the bank deals with farmers, its clients, in a flexible way - especially with individuals who fell into debt due to circumstances beyond their control.

The bank follows a policy, including debt settlement, from three to seven years so that the treatment is suited to the circumstances and the activity of the customer and his potential to repay, Kosair added.

He also clarified that the bank's policy in dealing with debts is based on reaching an informal agreement with farmers, in order to avoid taking any legal proceedings.

The bank's new debt policy provides clients with a longer repayment period, reduced yield or exemption, from part of the proceeds if it is offered for reasons beyond their control.

On the other hand, the bank announced last week that it issued 44,000 Aman Certificates for temporary and seasonal workers, with a total yield of LE 796 million since the issuance of the certificate.

The segments of Aman Certificates are LE 500, LE 1,000, LE 1,500, LE 2,000 and LE 2,500. The duration of the certificate is three years at a rate of 16 percent, and it can be redeemed at any time.

The Agriculture Bank of Egypt is a development institution for agricultural activity in Egypt.

It owns more than 1,210 branches and village banks that cover all of Egypt.

Moreover, the bank owns more than 4 million square meters of storage capacities, 2 million square meters of which are allocated to receive the local grains from farmers. The number of the shunas is 392 all over the country.