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Fri, 24 Jan 2020 01:36 GMT

Egypt’s Central Bank Backs Indebted Tour Operators

Business

7Dnews London

Sun, 15 Dec 2019 21:15 GMT

Egypt’s central bank will be supporting hotel operators and other investors to shore up the tourism sector, via 50 billion Egyptian pounds ($3.1 billion) from the current 5 billion pounds, an official statement said on Sunday, December 15th.

Egypt’s tourism faced a couple of challenges since 2011 that resulted in many companies racking up large debts with domestic banks.

According to Reuters, the central bank aid will help indebted touristic companies by freeing them from paying compound interest if they entered the market before 2011, as well as forgiving part of their debts and helping renovate hotels.

"A review was made of how to push the Egyptian tourism industry forward to take advantage of increasing growth in this sector, which is one of the largest sources of foreign currency," the central bank said.

The statement followed a meeting of tourism officials, investors, and central bank officials in the Red Sea resort of Sharm el-Sheikh.

Middle East Africa