Circular dated December 6, 2020 regarding extending the period of work in the tourism sector initiative and the retail loans initiative for workers in the tourism sector until the end of 2021

Cairo: December 6, 2020

Dear Chairman of the Board,

Greetings,

With reference to the Central Bank's initiative to support the Tourism Sector issued on March 31, 2020, and the Retail Loans Initiative for workers in the tourism sector issued on December 7, 2020, and its subsequent circulars, the latest of which is the circular issued on November 8, 2020, which extended the implementation period for Article 1 to December 13, 2020.

In light of the Corona crisis and the continuation of its impact on the tourism sector, the Board of Directors of the Central Bank of Egypt, in its meeting held on November 22, 2020, has approved the following decision:

1. Extend the validity period of the Tourism Sector Support Initiative for an additional year to end at the end of December 2021. Banks are allowed during this period to accept any requests for deferral of bank installments for up to 3 years, while confirming the following:

   • The thresholds mentioned in the initiative are indicative thresholds, and banks must study each case individually and make appropriate decisions regarding them.
   • The continuation of the remaining conditions of the initiative.

2. Extend the validity period of the Retail Loans Initiative for workers in the tourism sector for one year to end at the end of December 2021. Banks are allowed to accept requests for deferral of loan installments for the purposes of:

   1. Housing loans and Personal use loans for an additional 6 months from their due date, subject to:
      • The application of the creditworthiness assessment bases and the provisions issued by the decision of the Board of Directors of the Central Bank of Egypt in its meeting held on May 22, 2012, and the regular meeting held on September 11, 2020 - for borrowers in the tourism sector, taking into account the borrower's center for late interest payments during that period, while continuing the implementation of the remaining provisions of the initiative.

3. Do not interfere with credit provisions, while taking into account the requirements of the International Financial Reporting Standard for Financial Instruments (IFRS 9).

4. Allow the deferral of installments for borrowers in the tourism sector who previously benefited from the Retail Loans Initiative for workers in the tourism sector since its issuance on December 7, 2020.

Please accept our highest respect,

Tarek Amer

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