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Tuesday, 12 May 2020

FinMin to guarantee EGP 3 bn of low-interest CBE loans for tourism industry

FinMin to guarantee EGP 3 bn of low-interest CBE loans for tourism industry: The Finance Ministry will guarantee EGP 3 bn in funding provided by the Central Bank of Egypt (CBE) to state banks for soft loans to tourism companies and hotels, according to a ministry statement. The ministry will guarantee the loans for three years, including a one-year grace period. The loans, which are subsidized by the CBE, carry a 5% interest rate and are meant to help tourism companies cover wages, commitments to suppliers, and maintenance expenses amid a covid-induced slump. Beneficiaries are allowed to use up to 15% of the loan to cover basic operations costs.

Background: The CBE had decided last month to cut interest on soft loans for the tourism industry to 5% from 8%. The move came after the CBE extended its EGP 50 bn tourism support initiative to provide soft loans for tourism players to help them mitigate the impact of covid-19.

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