Calls for exceptional loan interest not exceeding 7%, and for clients not to be placed on the "I-Score" negative list
By Akram Medhat, Travel Yalla journalist
Dr. Atef Abdel Latif, a member of the South Sinai Investors Association, said banks have agreed to finance tourist resorts according to the number of hotel rooms, with loans of EGP 7,000 to 10,000 per room, to be spent on maintenance, development, renovation and labor, as well as on restructuring, studying long-term loans and rescheduling old loans.
This came as an effective, positive outcome of the meeting held in Sharm El-Sheikh that brought together tourism sector investors with South Sinai Governor Maj. Gen. Khaled Fouda, the deputy governor of the Central Bank and bank chiefs.
Abdel Latif added in statements today that the bank chiefs affirmed that the state wants to solve tourism's problems within the framework of banking policies, and that each bank will resolve its problems with its clients according to each client's situation. He noted that no fixed framework has been set for dealing with investors, but that banks will show flexibility in dealing with them and solving problems, stressing that if loans are rescheduled, the client must not be placed on the negative lists through the "I-Score" credit inquiry.
He stressed that banks granting the necessary financing to tourism projects will have many positive effects, including injecting money and cash liquidity into all the industries that serve tourism, such as wood factories, electrical appliances and other industries that depend on tourism, which number up to 72. This will bring about an economic boom, more job opportunities and no layoffs of current workers.
The member of the South Sinai Investors Association called for interest on the new loans to be exceptional, since they are development and maintenance loans and there is no tourism boom at present, so it is not right to impose interest at the same current rates; it should not exceed 7%.
Abdel Latif stressed that they will keep calling for the establishment of a fund to support and modernize the tourism sector with capital of EGP 2 billion, lending from it at low interest, as is done in industry through the Industrial Modernization Center.
It is worth noting that the meeting saw the participation of a large number of bank board chairmen and more than 50 officials from various banks, led by Gamal Negm, deputy governor of the Central Bank; Tarek Fayed and Tarek El-Kholy, sub-governors of the Central Bank; Hesham Okasha, chairman of the National Bank of Egypt; Mohamed El-Etreby, chairman of Banque Misr; and Hisham Ezz El-Arab, chairman of Commercial International Bank, as well as Qatar National Bank, Ahli United Bank, Egyptian Arab Land Bank, "HSBC", Suez Canal Bank, National Bank of Abu Dhabi and Arab African International Bank.
