Chapter Five: Irregular Customers Initiatives

Section Two: Irregular Customers Initiative From Legal Persons For The Tourism Sector

In light of the role played by the Central Bank of Egypt in monitoring the tourism sector, given its importance as one of the pillars of the national economy due to the foreign exchange revenue it generates and the employment opportunities it provides, and to facilitate the settlement of irregular customers in the tourism sector,

The Board of Directors of the Central Bank of Egypt has decided

In its session held on January 5, 2020, to approve the issuance of an initiative for the tourism sector according to the following determinations:

.1 The initiative applies to legal persons working in the tourism sector who are irregular customers whose debt volume reaches 10 million EGP or more (excluding marginal returns) from a single bank, whether judicial measures have been taken against them or not.

.2 The initiative comes into effect from its date until June 30, 2021.

In the event that the customer makes cash repayment or in-kind repayment (in case the bank accepts in-kind repayment) of 50% or more of the debt balance during the initiative period, the following shall apply:

a. Removal from the blacklist lists in the Central Bank of Egypt's credit registration system and the Egyptian Credit Information Company (Score-I), and disclosure as an initiative customer for two years from the date of repayment of the 50% portion as historical information only.

b. The trading ban does not apply with respect to this debt.

c. Waiver of all pending and exchanged cases in courts immediately upon the customer's agreement with dealing banks on repayment terms.

d. Release of all guarantees related to that debt.

.4 The value of debt forgiveness is determined according to what the bank decides based on the customer's credit study, emphasizing the necessity of conducting credit studies for customers so that grants are based on the specific situation presented and relying on project revenues as a source for debt repayment, while avoiding excessive reliance on personal guarantees and guarantees - including guarantee checks - from customers.

1 Letter from the Governor of the Central Bank of Egypt dated January 3, 2021 2 Letter from the Governor of the Central Bank of Egypt dated January 8, 2020