Regulatory Alerts2020-11-03
A circular dated November 2, 2020 amending some provisions of the tourism initiative issued under the guarantee of the Ministry of Finance
In a statement on May 15, 2021, the Egyptian Minister of Tourism and Antiquities, Dr. Khaled El-Enany announced new amendments to the previous initiative introduced on March 23, 2020, to support tourism businesses by providing banks with guarantees to pay their employees' salaries, suppliers, and maintenance costs. The new measures are as follows: 1. **Extending the guarantee period from two years to three years with a maximum of six months for repayment**. 2. **Increasing the percentage of allocated loans from 85% to cover employee salaries, suppliers, and maintenance costs to 90%**, not exceeding five and a half million Egyptian pounds per employee within two quarters. 3. The remaining 10% of the guaranteed loan will be used for covering maintenance, operation, and service expenses. These changes aim to support tourism businesses more effectively by increasing liquidity and financial stability during these difficult times.