Regulatory Alerts2016-03-08
Added · Updated
Circular dated December 7, 2015 regarding the initiative to deal with retail loans for workers in the tourism sector
The Central Bank of Egypt mandates that banks defer scheduled payments for regular retail and mortgage loans granted to tourism sector workers for six months, starting October 1, 2015, without charging late fees or classifying the facilities as irregular. Banks must verify that borrowers are employed in specific tourism activities, including hotels, travel agencies, transport, and hospitality, and update their Know Your Customer (KYC) data accordingly. The initiative requires banks to notify the Central Bank of Egypt in advance if they wish to participate and to report the loans to the Egyptian Credit Bureau as regular, reflecting the extraordinary circumstances affecting repayment capacity.