The state-owned Agricultural Bank of Egypt (ABE) announced the launch of an initiative to settle debts worth of 6.3 billion Egyptian pounds ($399.6 million) for 328,000 defaulting farmers in a step aimed at backing the country’s agriculture sector.
According to the bank, the original debts are worth a total amount of 3.9 billion pounds with total accumulated interests of 2.4 billion pounds.
The new debt relief initiative for defaulting customers will waive debts and their interests for farmers with original debts of 25.000 pounds, in addition, The farmers will have their names removed from the Central Bank of Egypt and i-Score’s blacklist and will see restrictions on their assets lifted.
The total number beneficiaries included in this segment are 307,000 clients, most of whom are small farmers. The total amount of original debts that will be waived for these farmers are up to 415 million pounds, with total interests amounting to 226 million pounds.
Under the initiative, the bank will waive 50 percent of the original debts as well as the total value of interests for defaulting individuals and companies with total amounts between 25,000 pound and 1 million pounds. However, the eligible customers will have to make a 50 percent payment of the original debt in cash or in-kind and arrange a payment plan with the bank.
The total beneficiaries included in this segment are 21,000 customers. The total amount of original debts that will be waived for these defaulters are up to 3.5 billion pounds, with total interests amounting to 2.2 billion pounds.
The Agricultural Bank of Egypt is one of the largest institutions in Egypt. It is one of the largest banks in the Arab world and the Middle East. It has more than 1210 branches and a village bank.