CBE issues regulations governing tourism support initiative
Updated 10/20/2024 2:57:00 PM
Arab Finance: The Central Bank of Egypt (CBE) has issued regulations governing the tourism support initiative approved by the Cabinet and financed by the Ministry of Finance, as per a circular by the bank.
Under the regulations, the maximum limit for financing each company is EGP 1 billion, and EGP 2 billion for financing the company and the affiliated entities, facilitated by no more than two banks.
The initiative’s maximum financing limit is EGP 50 billion or the facilities allocated within one year as of the launch date, whichever comes first.
The initiative’s withdrawal duration shall not exceed 16 months as of the first withdrawal date or June 30th, 2026, whichever comes first.
Furthermore, the funds shall be directed toward firms operating in the tourism sector after obtaining an approval from the Ministry of Tourism and Antiquities.
The regulation also stipulates that the beneficiaries shall pay a declining interest of 12%, while the Ministry of Finance shall cover the interest spread under the initiative.
Moreover, the benefiting companies shall sell 40% of their revenues in foreign currency to the related banks.
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