Circular dated January 8, 2020 regarding the initiative to support the replacement and renovation of residence hotels, floating hotels, and tourist transportation fleets

Dear Sir, Chairman of the Board of Directors of Tahya Bank,

Greetings,

Further to the reference regarding the Central Bank of Egypt's initiatives for the tourism sector, issued on February 21, 2017, regarding the financing of regular tourism companies and establishments wishing to replace and renovate residence hotels, floating hotels, and tourist transportation fleets, through which an amount of 5 billion EGP was made available through banks at an interest rate of 10% (calculated on a declining balance basis), and in order to provide further support to this sector and meet its needs, the Board of Directors of the Central Bank of Egypt decided in its meeting held on January 5, 2020, to terminate the aforementioned initiative and issue a new initiative under the following conditions:

1. Making available an amount of 50 billion EGP through banks at an interest rate of 10% (calculated on a declining balance basis).

2. The purpose of the financing is to carry out the necessary replacement and renovation operations for residence hotels, floating hotels, and tourist transportation fleets.

3. The loan term is 15 years maximum, according to the bank's credit studies and cash flows.

4. Customers belonging to the initiative may benefit, according to the bank's policy.

Taking into consideration that the initiative does not apply to customers with absolute blacklists, based on the credit study prepared for each customer.

5. The bank finances up to 75% of the total cost of replacement and renovation, with the customer bearing the remaining percentage, and the customer's share is repaid in proportion to the bank's share based on the bank's study of the cash flows provided by the customer.

6. The replacement and renovation process must comply with the standards and specifications issued by the Ministry of Tourism.

7. The bank must obtain the technical studies (including feasibility study) conducted by the company, with the bank relying on a specialized accredited entity to verify the project's feasibility, follow up on implementation, and approve completion ratios, such that the withdrawal of financing corresponds to extracts consistent with these ratios.

8. The amounts granted under this initiative shall not be used to repay existing financing facilities granted to the customer that are required to be used for the purpose for which the financing was granted.

9. Compensation for the interest rate difference shall be made every 3 months based on the following:

Component	Value
Credit Rating
And
Customer
+
2% -
10%

This is with the emphasis that the bank must study each case individually and take the appropriate decision regarding it.

Please be so kind as to alert regarding taking the necessary action to implement the aforementioned initiative effective from its date.

Accept the highest respect,
Tarek Amer