Regulatory Alerts2020-06-17
Added · Updated
Circular dated June 16, 2020 regarding the initiative to finance the payment of salaries and wages for workers in the tourism sector, guaranteed by the Ministry of Finance
The Central Bank of Egypt approves a 3 billion EGP guarantee issued by the Ministry of Finance to support the tourism sector, allocating this amount to cover 100% of loans granted to tourism companies for paying salaries and wages for three months starting May 2020 and for basic maintenance and operating expenses. The initiative applies to accommodation, floating hotels, transport, travel agencies, and restaurants, with a repayment period of two years including a one-year grace period, and requires banks to coordinate with the Egyptian Hotels Association on specific criteria and reporting. Banks must ensure that funded companies do not reduce workforce or wages from December 2019 onwards and are prohibited from using these funds to repay facilities granted under the March 23, 2020 circular.