EGYPT – The Egyptian Ministers of Finance and Tourism and Antiquities announced a new initiative aimed at strengthening the tourism sector through financing facilities amounting to EGP 50 billion (US$1 billion).
Finance Minister Ahmed Kochouk outlined that the initiative encompasses a government-supported interest rate for financing extended to tourism companies, which will be available for five years following the initial disbursement.
To qualify for this financing, tourism companies are required to sell 40% of their foreign currency earnings to the lending banks.
Kochouk highlighted that this initiative is in line with Egypt’s broader economic objectives aimed at stimulating growth and increasing liquidity in the private sector, emphasizing the government’s commitment to supporting tourism as a vital component of the economy.
Sherif Fathy, the Minister of Tourism and Antiquities, underscored the initiative’s significance in attracting investments, particularly in hotel development, to address the expected rise in tourism demand.
The application process will remain open for one year, with individual clients able to access up to EGP 1 billion (US$20.7 million) in financing and related parties up to EGP 2 billion (US$41.4 million).
Qualified companies will benefit from a reduced interest rate of 12%, with a maximum withdrawal period of 16 months, concluding in June 2026.
The Ministry of Finance will cover the interest rate differential, which is calculated as the Central Bank’s credit and discount rate plus 1%, minus 12%, on a declining basis. However, this compensation does not include any additional fees or commissions.
Companies taking part in the initiative will be responsible for any increase in the credit and discount rate beyond the existing rate at the time the initiative is launched.
Furthermore, clients are not allowed to use the credit obtained through this initiative to settle any other outstanding debts with banks.
This initiative supports the Ministry of Tourism and Antiquities’ goal of attracting 30 million tourists. Meeting this target requires adding between 240,000 and 250,000 new hotel rooms to the existing capacity, alongside expanding restaurant facilities.
In alignment with the national tourism strategy, the initiative aims to enhance the primary tourism products emphasized by the Ministry of Tourism and Antiquities, such as cultural tourism, while also developing new tourism offerings that capitalize on Egypt’s abundant attractions.
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