Regulatory Alerts2024-10-20
Added · Updated
Council of Ministers’ Approval of Tourism Sector Support Initiative Funded by the Ministry of Finance
The Council of Ministers approved an initiative to support the tourism sector with a maximum limit of 50 billion pounds or facilities granted within one year, whichever comes first. Financing is restricted to two banks, with maximum limits of 1 billion pounds per customer and 2 billion pounds for customers with related expenses, subject to prior approval from the Ministry of Tourism and Antiquities for specific uses such as building new hotel rooms or renovating closed ones. Beneficiary companies must sell 40% of their revenues in foreign currency to participating banks and bear an excise return of 12%, with the Ministry of Finance covering the difference between this rate and the applicable bank rate plus 1%. The initiative allows a maximum drawdown period of 16 months or until June 30, 2026, and prohibits using the credit to pay other banking sector debts.