NBE Wrote Off EGP 12 Bln Debts In Four Years
The National Bank of Egypt (NBE) has written off debts of EGP 12 billion for the period from 2008 to the end of the first half of 2012, sources told Amwal Al Ghad.
The bank written off debts of about EGP one billion during the FY 2011/2012 ended on June 30th, 2012. Such move came as part of NBE’s efforts in improving the outlook of its credit portfolio as bad debts, doubtful debts and written off debts are given ratings of 8, 9 and 10 respectively, according to Basel I regulations.
The bank written off such debts after the debtors died, imprisoned or fled abroad and has set provisions for 100% of these debts. However, this does not mean the bank will not sue the delinquent debtors, sources said.
NBE has succeeded in the last four years in signing 2600 settlement agreements of debts worth EGP 24 billion till the end of last March. The bank’s non-performing loans registered EGP 30 billion in 2008. There are 350 delinquent customers at the bank, but most of which are young customers as there are only 6 old delinquent customers.
