Regulatory Alerts2021-02-17
Added · Updated
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
The Central Bank of Egypt issues a guarantee commitment of 2 billion Egyptian pounds to the Credit Risk Guarantee Company to cover 60% of credit risks for tourism sector facilities granted under the hotel replacement and renovation initiative, with banks retaining a 40% risk share. The maximum guaranteed facility per client is capped at 400 million Egyptian pounds, and the guarantee applies only to new clients or increases to existing facilities, excluding the previously allocated 3 billion pounds guaranteed by the Ministry of Finance. The initiative is restricted to financing the replacement and renovation of existing tourism facilities, prohibiting the use of funds for debt repayment or for clients previously involved in fraud.