CBE makes some clarifications on loan installment postponement

CAIRO - 16 April 2020: Under the loan installment postponement initiative, the Central Bank of Egypt made clear on Thursday that accrued interest rate will be applied on the remaining amounts of loan and not on the total loan value.

The CBE has earlier decided to postpone loan installments for a period of six months without imposing any extra charges as part of measures to ease economic repercussions of a coronavirus pandemic.

The accrued interest for this period in addition to the principal will be collected by banks after the end of the six-month period, the CBE said in a statement.

It instructed banks not to collect accrued interest from the first installment to be paid after the end of the period.

Each bank has to provide clients with different options to settle their accrued interest, the statement said.