Regulatory Alerts2017-06-22
A circular dated June 22, 2017 regarding extending the work period for the retail loans initiative for workers in the tourism sector
In June 2017, the Central Bank of Egypt announced a plan to help tourism and employees affected by the recent terror attacks. The bank decided to extend loan installments for tourism workers until December 2017, allowing banks to postpone worker loan payments for non-priority loans and mortgages as of March 2017 - only for those employees in the tourism sector who were directly affected by the situation. In addition, it was decided to extend some of the loans' deadlines, while also allowing companies to renegotiate terms on installment payments that began from their initial issuance in December 2015 and received high interest rates. The plan was based on the belief that supporting tourism and its employees would improve the Egyptian economy and help attract foreign investments.