Circular dated May 19, 2021 regarding amending the two tourism initiatives to finance the replacement and renovation of hotels and transportation fleets and the payment of salaries, wages, and maintenance

Cairo: May 19, 2021

Dear Mr. / Chairman of the Board of Directors Bank Al Etihad,

With reference to the previous letter dated January 8, 2020, which concerned the amended circular for financing the replacement and renovation of tourism hotels and transportation fleets (at a declining interest rate of 8%), and the subsequent letter dated February 17, 2021, which announced the approval of the amended circular for a guarantee amount of 2 million Jordanian Dinars for the replacement of tourism hotels to finance the tourism companies in the aforementioned initiative.

And with reference to the letter concerning the financing of salaries and wages of employees in the tourism sector, in addition to financing maintenance and basic supplies (at a declining interest rate of 5%), with a financial guarantee of 3 million Jordanian Dinars, as per the letter dated June 16, 2020, and the subsequent letter.

And in light of the continuous monitoring of the progress of the initiatives and the desire to continue supporting the tourism and hotel sectors in light of the continued impact of the Corona virus and its effects on the tourism sector in the coming period, it has become necessary to amend the tourism and hotel initiatives managed by the administration of the final financial and basic supplies for all its establishments and the associated sectors.

And in light of this, the Board of Directors of the Bank, in its meeting held on May 9, 2021, decided the following:

First: Some of the financing conditions and the replacement and renovation of hotels and transportation fleets (at a declining interest rate of 8%) are amended as follows:

• The Bank provides financing of up to 90% (from 75%) of the total cost of replacement and renovation,
  To which the client must cover the remaining percentage by providing a guarantee from the client in a ratio that is consistent with the Bank's assessment of the client's future cash flows.

• The degree of collateral guarantee is reduced to 70% (from 60%) of the collateral guarantee for approved facilities, to which the banks must provide a 30% (from 40%) guarantee before the request for the guarantee level.

Second: Some of the financing conditions for the payment of salaries and wages of employees in the tourism sector and maintenance and basic supplies with a financial guarantee of 3 million Jordanian Dinars (at a declining interest rate of 5%) are amended as follows:

• The initiative is extended to November 2021 (instead of June 2021) or by the end of the amount of 3 million Jordanian Dinars after that, and with a repayment period until June 2022 to start paying the first installment in June 2022 for a period of five years.

• The possibility of extending the grace period for the client to be up to 30 days for individuals and 40 days for companies and the highest related to the completion of the work.

And we would like to draw attention to the following:

• The initiative applies to the participating establishments operating in the tourism field, and the conditions of the initiative apply regardless of the percentage of foreign shareholding.

• Regarding the initiative for financing the payment of salaries and wages of employees in the tourism sector in addition to financing maintenance and basic supplies (at a declining interest rate of 5%) with a financial guarantee, it is not required for the borrowers to have achieved profits in previous years.

• The confidentiality of the conditions of the initiatives remains valid for what is not mentioned in the text.

And you will remain in the highest respect

The Governor