CAIRO – 24 March 2020: The Central Bank of Egypt (CBE) decided Tuesday to grant tourism facilities two-year loans, in addition to a grace period of 6 months, to pay the salaries of employees and their obligations towards suppliers and maintenance work.
CBE added that with reference to the initiative issued to support the tourism sector and to allocate around LE 50 billion to finance companies and tourist facilities that want to replace and renew hotels and tourism transportation fleets at a rate of 8 percent. “A new article was added to the initiative includes the provision of credit facilities for a period of two years.”
By the end of 2019, CBE announced the largest financing plan to support the tourism industry, which includes increasing the value of its initiative to renovate and develop hotels from LE5 billion to LE50 billion.
“This procedure will contribute to the payment of salaries, wages and obligations existing with suppliers and maintenance work for tourist activities, especially hotels for residence and tourism projects, except for those for sale, travel agency services, reservations, and tourist trips, land tourist transport, restaurants and recreational activities in tourist areas, air transport for passengers,” CBE clarified in its statement.
This step comes after President Abdel Fatah al-sisi announced a number of economic measures, including providing necessary support to the sectors that are most affected by coronavirus, launching an initiative to back workers impacted by losses in the tourism sector and funding hotels by up to LE 50 billion ($3.2 billion).