Agricultural Bank of Egypt to settle EGP 6.3 billion in bad debts for 238,000 farmers
The Agricultural Bank of Egypt (ABE) announced an initiative to settle EGP 6.3 billion in bad debts belonging to about 328,000 defaulting customers of the bank.
The initiative enables a full settlement of the bank’s non-performing loan portfolio, which amounts to approximately EGP 6.3 billion. It includes a total principal debt of about 3.9 billion EGP and a cumulative total return of about 2.4 billion EGP, owed by farmers.
It focuses on hundreds of thousands of small farmers and is part of supporting the Egyptian agricultural sector.
The initiative aims to enable failed clients in the agricultural sector to reconnect with the banking sector and ensure their return to work and production. It will do so in a way that helps provide greater income opportunities and creates employment opportunities.
Final execution of all debt for clients with original debts of EGP 25,000 or less will be made, along with any returns accrued after default. In addition to this, customers will be removed from the blacklists of the Central Bank of Egypt (CBE) and the Egyptian Credit Investigation Company I-Score.
Customers will also be able to benefit from a waiver of all disputes between the bank and the customer, in the event of presence. The total number of beneficiaries included in this segment of the initiative is around 307,000 clients, most of whom are small farmers.
The principal total debt that will be forgiven of these customers is approximately EGP 415 million, in addition to the proceeds of approximately EGP 226 million.
Under the initiative, 50% of debts will also be waived for defaulting customers with debts between EGP 25,000 and EGP 10 million, both for individuals and businesses. This will take place on the condition that the customer pays 50% of the original debt, while abandoning all returns and waiving all cases.
The total finances of the beneficiaries included in this client segment represent approximately EGP 21,000, with a total principal debt of approximately EGP 3.5 billion, in addition to returns which amount to approximately EGP 2.2 billion.