The Central Bank of Egypt (CBE) has unveiled comprehensive guidelines for a significant tourism support initiative aimed at revitalizing the sector, following the Egyptian government's announcement to allocate EGP 50 billion.

This funding, provided by the Ministry of Finance, is designed to bolster tourism companies impacted by recent challenges.

According to the CBE’s circular, the credit available to each company will be determined by the scale of its operations and existing banking regulations.

Under the initiative, a single client can secure a maximum funding of EGP 1 billion, while related entities may access up to EGP 2 billion. Funding will be disbursed through a maximum of two banks, with client data monitored via the Central Bank’s electronic system for accountability.

The initiative allows for exemptions from the funding cap for strategically vital projects, however, such exemptions require a joint letter from the Minister of Finance and the Minister of Tourism and Antiquities to the Central Bank.

The funding cap is set at EGP 50 billion, or the total amount disbursed within the first year, whichever occurs first. Beneficiaries will have a 16-month withdrawal period, concluding on June 30, 2026, along with a six-month grace period to secure operating licenses.

Funds from the initiative are earmarked for various purposes, including constructing new hotel rooms, expanding existing facilities, acquiring and renovating closed hotels, and financing unfinished hotel projects. The eligibility criteria specify that funded rooms must be located in key tourist destinations such as Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai.

The initiative offers a competitive interest rate of 12%, with the Ministry of Finance covering the difference between this rate and the Central Bank’s credit and discount rate plus one percent. Beneficiary companies are required to repay the principal and interest in accordance with established terms and are mandated to sell 40% of their revenue in foreign currency to participating banks.

To maintain transparency and compliance, beneficiary companies must provide annual audit reports from accredited firms to verify adherence to the foreign currency sales requirement. Furthermore, it is prohibited for any client to use the credit obtained under this initiative to settle existing debts within the banking sector.

With these guidelines, the Central Bank aims to stimulate investment in Egypt’s tourism sector, ultimately enhancing its appeal as a destination for international travelers and bolstering the national economy.