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.
The Central Bank of Egypt (CBE) has approved a new financing program for hotels that are under reconstruction or awaiting licensing. This program, named "Tamkeen," will provide financing up to 70% of the investment cost, with an additional 10% for upgrading facilities. The remaining 20% must be secured by the investor through other means such as equity. The financing facility's repayment period is up to 15 years, which includes a grace period of 4 years without interest. The program aims to encourage and support investors in completing their projects and reviving the tourism sector in Egypt. It also helps in enhancing the infrastructure of hotels and improving the overall quality of services provided to tourists. This initiative is expected to create job opportunities, contribute to Egypt's economic growth, and enhance the country's reputation as a global tourist destination.