Source: Daily News Egypt. The Central Bank of Egypt (CBE) launched an initiative to renovate of hotels, floating hotels. Under the initiative, banks will secure EGP 5bn with an interest rate of 10%, extending over a maximum period of 10 years, according to the credit study conducted on each client separately.
According to the CBE, the initiative directives stipulated that the main purpose of financing must be for renovation and renewal of hotels and support tourism. Clients seeking funding must also be proven to be committed in repaying their loans. It stated that local components must also be used in 75% of the renewal process.
The CBE noted that renovation and renewal must abide by the new standards and specifications of the Ministry of Tourism.Under this initiative, banks will finance 75% of the total cost of renovation and renewal, while clients will bear the remaining 25%.