To address the needs of companies that operate in the tourism sector, and with the aim of expanding Egypt’s hotel room capacity, the Central Bank of Egypt (CBE) has revealed the issuance of a EGP50 billion initiative to support the tourism sector, funded by the Ministry of Finance and in coordination with the Ministry of Tourism and Antiquities. Loans would be made available for qualified beneficiaries at a reduced interest rate of 12 per cent on declining basis. Current interest rates for borrowing stand at 27.7 per cent.
Cabinet’s determinants for the initiative stipulate that loans should be directed to building new hotel rooms or acquiring non-operating ones, including finance of hotel rooms renovations; and the acquisition of closed down buildings for the purpose of converting them into hotel facilities. A timely operating license is a condition to qualify for the initiative.
Additionally, the initiative requires authorised approval of the beneficiaries for selling 40 per cent of their foreign currency revenue to the official banking sector.
Watani International
22 October 2024