Regulatory Alerts2021-01-13
Added · Updated
Circular dated January 13, 2021 regarding the emphasis on notifying tourism sector clients of the initiatives issued to them and that bank employees are aware of all initiatives
The Central Bank of Egypt requires banks to formally notify tourism sector clients in writing of the conditions and specifications of recent initiatives due to low utilization rates caused by insufficient information at branches. Banks must submit copies of these notifications to the Central Bank's Office Supervision Sector immediately upon issuance and provide monthly reports detailing any rejections of credit facilities under these initiatives, including reasons for rejection. Additionally, banks must ensure employees are fully aware of all initiative terms and establish a hotline to answer client inquiries regarding them.
Cairo: January 13, 2021
Dear Sir / Chairman of the Board
Greetings,
With reference to the initiatives of the tourism sector issued by the Central Bank recently, and in light of the continuous follow-up of the performance of these initiatives, it became clear that the utilization of the amounts allocated to them is low. Communication with clients in the mentioned sector revealed that the reason is the failure to inform clients of the details and conditions that enable them to benefit from these initiatives, due to the lack of sufficient information about them at bank branches, especially those located in the governorates.
In light of the above, and with the aim of achieving the objectives of the initiatives and providing the necessary support to the tourism sector in the crisis, especially in light of the current circumstances and repercussions of the new coronavirus crisis, as it is one of the most affected sectors, it is necessary to alert to the following:
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Addressing all clients of the tourism sector in your esteemed bank in writing to inform them of the conditions and specifications of the issued initiatives.
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Providing the Office Supervision Sector of the Central Bank with a copy of such letters immediately upon their issuance.
On another note, and regarding all initiatives issued by the Central Bank of Egypt, please be kind enough to alert to the following:
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Providing the service of answering client inquiries regarding any of the mentioned initiatives through the bank's dedicated hotline.
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Emphasizing the awareness of the concerned employees of all conditions and specifications of the initiatives.
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Providing the Office Supervision Sector of the Central Bank with a monthly statement including cases of rejecting granting credit facilities to clients within the framework of any of the initiatives issued by the Central Bank, with an explanation of the reasons for rejection, on the form prepared for this purpose, which will be provided to you later.
Please be kind enough to alert to full compliance with the above.
Accept our highest respect,
Tarek Amer