Central Bank of Egypt cuts interest on loans to tourism companies to 5%

REGULATION WATCH- CBE cuts interest on soft loans for tourism industry to 5% from 8%: The central bank is subsidizing loans from banks to tourism companies to help them cover wages, commitments to suppliers and maintenance expenses, the Tourism and Antiquities Ministry said in a statement. CBE had extended its EGP 50 bn tourism support initiative to provide soft loans to tourism companies to help them mitigate the impact of the covid-19 on their business. The loans originally carried an interest rate of 8% tenor of two years, and provide a six-month grace period. Egypt expected tourism revenues to hit USD 15 bn this year, up from a record USD 13 bn in 2019, before the pandemic hit.