Subsidized loans to the tourism industry are history: The Central Bank of Egypt has suspended the tourism financing initiative and instructed banks to stop disbursing loans at reduced interest rates to companies operating in the sector, it said in a sta t ement (pdf) lat week.

Out with the old, in with the new: The CBE is currently working along with the ministries of finance, tourism and antiquities on launching a new initiative for the tourism sector, the statement reads, without providing more information.

As with most things these days, there’ll be an FX conditionality: The new initiative will be open only to those who make FX-denominated investments, make FX deposits, or make transactions through Egyptian banks in a way that supports closing the country’s FX gap, a government source told Enterprise yesterday on condition of anonymity.

The scheme could be up and running in 2-3 months: The entities responsible for the new initiative will consult with industry leaders with a view to launch the initiative in the next two to three months, the source added.

Tags: