CBE to cover tourism funding risk

The Central Bank of Egypt (CBE) is to loan LE2 billion to the Credit Risk Guarantee Company to cover the partial risks of funding tourism companies.

The CBE said in a statement Thursday that the move is part of an initiative launched last year to provide LE50 billion through banks at 8 percent interest to renovate residential and floating hotels, as well as tourist transport fleets in a bid to lighten the repercussions of the coronavirus pandemic.

Under this initiative, LE3 billion would cover loans to tourism firms with the guarantee of the finance ministry, the statement added.

The CBE stipulates that the maximum guarantee should not exceed LE400 million for each client, the statement said.