Farm bank settles £ 1.4bn debt

The Agricultural Bank of Egypt – Photo courtesy of the bank’s website

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

Kosair clarified that the bank deals with farmers, its customers, in a flexible way – especially with people who have gone into debt due to circumstances beyond their control.

The bank follows a policy, including debt settlement, of three to seven years so that the processing is tailored to the customer’s circumstances and activity and their repayment potential, Kosair added.

He also clarified that the bank’s debt policy is based on entering into an informal agreement with the farmers, in order to avoid taking legal action.

The bank’s new debt policy offers customers a longer repayment period, reduced return, or waiver of part of the proceeds if offered for reasons beyond their control.

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

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

The Agricultural Bank of Egypt is an institution for the development of agricultural activity in Egypt.

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

In addition, the bank has more than 4 million square meters of storage capacity, of which 2 million square meters are allocated to receive local cereals from farmers. The number of shunas is 392 across the country.

Naomi C. Amerson