Regulatory Alerts2021-02-17
A circular dated February 17, 2021 regarding guaranteeing the facilities granted within the framework of the tourism initiative to finance the replacement and renovation of hotels through the Credit Risk Guarantee Company.
In a letter dated February 17, 2021, the Chairman of the Cairo Board of Directors addresses the Central Bank's initiative from January 8, 2020, which allocated 50 billion Egyptian pounds through banks at an 8% decreasing return rate to finance the renewal and replacement of hotels, floating hotels, and tourist transport fleets. A portion of this amount, 3 billion Egyptian pounds, was guaranteed by the Ministry of Finance to cover 100% of the loans granted to tourism companies. Due to the ongoing impact of the COVID-19 crisis on the tourism sector, the Central Bank of Egypt decided to issue a guarantee of 2 billion Egyptian pounds in tranches, starting with the first tranche of 1 billion Egyptian pounds, to the Credit Risk Guarantee Company.