Circular dated December 28, 2017 regarding extending the work period for the tourism sector support initiative and the retail loans initiative for workers in the tourism sector until the end of 2018

Cairo: December 28, 2017

Dear Mr. Chairman,

Greetings,

With reference to the circulars regarding the Tourism Sector Support Initiative issued on February 23, 2016, and the Retail Loans for Workers in the Tourism Sector Initiative issued on December 7, 2015, which stipulate that the validity of these initiatives ends on December 31, 2017, and considering the extension of the validity of the Tourism Sector Support Initiative until the end of 2018 as per Circular No. 22 dated July 22, 2017, and in light of the positive response from banking institutions to the initiative and the high number of applicants, and in order to support the tourism sector and its workers, and after reviewing the request submitted by the Egyptian Tourism Federation on December 27, 2017, the following is approved:

1. Extension of the validity period of the Tourism Sector Support Initiative to end by the end of December 2018, with the understanding that banks may defer loan installments for a maximum period of three years, with emphasis on the following:

   • Maintaining the conditions and criteria specified in the circular regarding the conditions and criteria for granting loans to tourism establishments.
   • Prohibiting any retroactive modification to loan contracts.

2. Extension of the validity period of the Retail Loans for Workers in the Tourism Sector Initiative for a period of one year to end by the end of 2018, with the understanding that a grace period of six months is granted for loans disbursed before September 30, 2017 - to licensed tourism establishments - to cover the period from the date of disbursement until the end of the initiative.

This grace period applies to loans granted to workers in licensed tourism establishments who were previously eligible for the Retail Loans for Workers in the Tourism Sector Initiative, and they are entitled to request a grace period for loans they did not benefit from under the initiative, provided that they are employed in licensed tourism establishments as of December 7, 2015.

Please accept our highest regards,

1. The definition of licensed establishments includes establishments licensed by the Egyptian Tourism Authority and establishments licensed by the relevant authorities as per Circular No. 24 dated May 24, 2005.