2016-05-16

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Circular dated May 15, 2016 regarding extending the period of work on the initiative to deal with retail loans for workers in the tourism sector until the end of December 2016

The Central Bank of Egypt extends the initiative for retail loans to tourism sector workers until the end of December 2016, allowing banks to defer loan maturities for up to six months for eligible customers without charging late fees. This extension applies specifically to installment and residential mortgage loans for regular employees, while all other provisions of the initiative remain in effect.

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Egypt

Central Bank of Egypt

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Cairo: May 15, 2016

Dear Chairman of the Board,

Bank Tahya Misr

Greetings,

With reference to the Central Bank of Egypt's initiative to support workers in the tourism sector, issued pursuant to our letters dated December 7, 2015, and in light of the continued impact on the tourism sector and its workers, the Board of Directors of the Central Bank of Egypt, in its meeting held on May 12, 2016, approved the following decision:

  1. The period of work on the initiative for retail loans to workers in the tourism sector is extended until the end of December 2016. During this period, banks are allowed the possibility of deferring the maturities of loan customers for a period of 6 months from September 30, 2015, for installment purposes and residential mortgage loans for regular employees only, according to their maturities, without calculating late fees for that period.

  2. The continuation of the validity of the remaining provisions of the initiative.

Please accept our highest respect.

Gamal Naguib

According to the bases for forming customer creditworthiness and forming provisions issued by the decision of the Board of Directors of the Central Bank of Egypt in its meeting held on May 24, 2005.