Regulatory Alerts2022-04-28 | CBE10.9CBE Regulation Book 10.9 - Pledges Issued By The Central Bank To The Credit Risk Guarantee Company.
The Central Bank of Egypt (CBE) is considering plans to provide up to EGP50 billion ($3.24 billion) in soft loans for local tourism companies and to refinance existing debts, according to a report by Al-Borsa News. The proposed plan would involve the following measures: 1. Extending a guarantee of EGP3 trillion ($192.85 billion) to finance local banks that issue loans to tourism companies. This is subject to the conditions set forth in the following points. 2. A private company, Egyptian Credit Guarantee Company (ECGC), will be hired to provide a guarantee of up to 100% of the total debt owed by tourism companies from local banks. The Central Bank of Egypt will have a say over the terms and conditions of this arrangement. 3. A private company, Egyptian Credit Guarantee Company (ECGC), must provide monthly detailed reports that include the names of borrowers and amounts loaned, as well as the payment dates and names of debtors along with their overdue payments. 4. The Central Bank of Egypt is considering launching a plan to refinance transportation companies. This plan would involve replacing old vehicles powered by diesel with new ones that use dual-fuel (diesel and natural gas). This move is being encouraged due to the efforts made by the government to reduce emissions, and it is expected to contribute to lowering fuel prices. The Central Bank of Egypt has decided on a plan to provide EGP150 billion ($9.67 billion) in loans for Egyptian Credit Guarantee Company (ECGC), an entity that will guarantee the debt of transportation companies. The banks will take over 80% of this loan, with the remaining 20% being covered by the banks themselves. This initiative is expected to help transport companies who are currently suffering from the effects of the COVID-19 pandemic.