2017-06-22

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Circular dated June 22, 2017 regarding extending the work period for the retail loans initiative for workers in the tourism sector

The Central Bank of Egypt extends the validity of its December 7, 2015 retail loan initiative for tourism sector employees until the end of December 2017. During this extension, banks are permitted to defer repayment obligations for eligible customers' personal housing and mortgage loans for six months from the due date without charging late interest. All other provisions of the original initiative remain in full force.

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Egypt

Central Bank of Egypt

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Cairo: June 22, 2017

Dear Chairman of the Board,

Greetings,

With reference to the issuance of support for workers in the tourism sector initiative issued by letter dated December 7, 2015, and in the context of the Central Bank of Egypt's efforts to support and assist the tourism sector and its workers until it recovers, the Board of Directors of the Central Bank of Egypt, in its session held on June 22, 2017, approved the following decision:

  1. Extend the implementation period of the retail loans initiative for workers in the tourism sector until the end of December 2017. During this period, banks are allowed to defer repayment obligations for personal housing loans and mortgage loans of regular workers in the tourism sector only - to the center 1 for Personal Housing for a period of 6 months from the date of maturity, without calculating late interest for that period.

  2. The continuation of the application of the remaining clauses of the initiative.

In order to facilitate deferral of repayments for customers who have previously benefited from this initiative since its issuance on December 7, 2015, and in accordance with the creditworthiness assessment principles for customers and provision formation issued by the decision of the Board of Directors of the Central Bank of Egypt in its meeting held on May 24, 2005.

Please accept our highest respect,

Gamal Naguib