Regulatory Alerts2020-01-08
Added · Updated
Circular dated January 8, 2020 regarding the initiative to support the replacement and renovation of residence hotels, floating hotels, and tourist transportation fleets
The Central Bank of Egypt terminates the previous tourism sector financing initiative and establishes a new one providing 50 billion EGP at a 10% declining balance interest rate for the replacement and renovation of residence hotels, floating hotels, and tourist transport fleets. Loans are capped at 15 years, with banks financing up to 75% of costs contingent on cash flow studies and compliance with Ministry of Tourism standards. Banks must obtain technical feasibility studies, use specialized entities for verification, and compensate for interest rate differences every three months based on a specified formula.
Topics
credit
monetary
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