Circular dated February 17, 2021 regarding guaranteeing facilities granted within the framework of the tourism initiative to finance the replacement and renovation of hotels through the Credit Risk Guarantee Company

Mr. Chairman of the Board of Directors of Cairo Bank on: February 17, 2021

Greetings,

With reference to the Central Bank initiative issued on January 8, 2020, and its amendments, which made available an amount of 50 billion Egyptian pounds through banks at an interest rate of 8% calculated on a declining basis to finance the replacement and renovation of accommodation hotels, floating hotels, and tourist transport fleets, a tranche of which was allocated in the amount of 3 billion Egyptian pounds with a guarantee from the Ministry of Finance to cover 100% of the value of loans granted to tourism sector companies according to the limits of that tranche.

And in light of the continuous follow-up of the performance of the aforementioned initiative and the Central Bank's desire to continue supporting the tourism sector in light of the coronavirus crisis and its continued impact on it, the Board of Directors of the Central Bank of Egypt decided in its meeting held on February 7, 2021 the following:

Issuing a commitment of 2 billion Egyptian pounds in tranches - starting with the first tranche of 1 billion Egyptian pounds - in favor of the Credit Risk Guarantee Company as a umbrella to guarantee the guarantee balances issued by the Company in favor of banks to cover part of the risks associated with financing tourism companies within the framework of the replacement and renovation initiative for accommodation hotels, floating hotels, and tourist transport fleets (excluding the 3 billion pounds amount allocated from the initiative with the guarantee of the Ministry of Finance), according to the following:

1. The maximum limit for the guaranteed facility under the aforementioned commitment shall not exceed 400 million Egyptian pounds per client and the client and related parties.

2. The Company guarantees 60% of the credit risks for the granted facilities, with banks bearing 40% before claiming the Company to disburse the guarantee.

3. Facilities may be granted within the framework of the replacement and renovation initiative for accommodation hotels, floating hotels, and tourist transport fleets in a value exceeding the maximum limit stipulated above, without benefiting from the commitment issued in favor of the Credit Risk Guarantee Company.

4. The aforementioned commitment is used to guarantee facilities for new clients or to increase existing facilities.

In the same context, it is necessary to emphasize the following:

• The aforementioned initiative applies to financing the replacement and renovation of existing tourism facilities, not those under construction.

• The facilities granted under the guarantee of the aforementioned commitment must not be used to repay existing facilities, and it must be ensured that the facility is used for the purpose for which it was granted.

• Customers who have been proven to be involved in fraud operations with the bank previously are not allowed to benefit from the initiative.

Please be kind enough to alert to compliance with the above.

Accept our highest respect,

Tarek Amer