Dear Mr. Chairman,

Greetings,

With reference to the initiative issued on December 12, 2019, concerning legal persons, whether judicial measures have been taken against them or not, from clients with doubtful or bad debts (creditworthiness categories 10 and 9), and whose debt balance is less than 10 million EGP, and in light of the role played by the Central Bank of Egypt in monitoring the tourism sector due to its importance as one of the pillars of the economy, and to facilitate payments for irregular customers in the tourism sector which generates foreign currency revenue and provides job opportunities, the Board of Directors of the Central Bank of Egypt, in its meeting held on January 5, 2020, decided to approve the issuance of an initiative for the tourism sector according to the following specifications:

1. The initiative applies to legal persons working in the tourism sector who are irregular customers, whose debt volume is 10 million EGP or more (excluding marginal returns) to a single bank, whether judicial measures have been taken against them or not.

2. The initiative takes effect from its date until December 31, 2020.

3. If the client, during the initiative period and until December 31, 2020, pays in cash or in-kind (if the bank accepts in-kind payment) 50% or more of the debt balance, the following will occur:

   a. Removal from the blacklist lists in the credit registration system of the Central Bank of Egypt and the Egyptian Credit Information Company (Score - I), and disclosure of the client as an initiative client for two years from the date of paying the 50% percentage as historical information only.

   b. The trading ban will not apply with respect to this debt.

   c. All pending and exchanged cases at courts will be dropped immediately upon the client's agreement with dealing banks on payment terms.

   d. All guarantees related to this debt will be released.

4. The value of the exemption from the debt will be determined as decided by the bank in light of the client's credit study.

This is while emphasizing the necessity of conducting credit studies for clients so that the credit grant is based on the feasibility study of the presented case and relying on project revenues as a source for repaying the debt, and avoiding excessive reliance on personal guarantees and securities - including guarantee checks - from clients.

Please be so kind as to alert regarding taking the necessary action to implement the aforementioned initiative from its date, with taking the necessary measures to achieve the desired objectives, including verifying that clients who meet the above are notified via registered letters in addition to other communication means, while ensuring that the settlement is completed in accordance with the correct law.

Please accept our highest respect,

Tarek Amer