Ahmed Ali, Mohamed Hamdy & Sayed Badr - 2013-12-25 11:25:14
The non-performing loan portfolio in the tourism sector accounts for EGP 4 billion, the Egyptian Arab Land Bank (EALB) Deputy Chairman Abdel Megid Mohy El-Din was quoted as saying on Wednesday.
EALB has made total finances worth EGP 12 billion in the tourism sector, he noted.
Mohy El-Din further stated to Amwal Al Ghad that EALB’s total NPL portfolio is valued at EGP 6 billion, saying his bank has made settlement agreements with the defaulters in the amount of EGP 200 million during the first quarter of the FY 2013/2014.
On ongoing political and security instability, Egypt’s tourism sector have been reversely affected resulting in facing multiple default cases among EALB’s clients over the last 3 years, Mohy El-Din elaborated.
In March 13, the Central Bank of Egypt (CBE) announced an initiative that could help support the unstable tourism industry, deciding to give greater credit facilities to clients investing in establishing tourism projects including hotels, recreational activities in tourist areas, transportation, restaurants, booking services and tours.
The bank also said that it had issued guidelines designed to help local banks deal with the debt repayment problems of existing projects and to take decisions accordingly. The guidelines included the granting of a further one-year grace period in addition to the existing one, during which further interest payments would be delayed without the imposition of penalties.
During this month, the central bank has renewed its initiative to be until December 2014.
tourism industry, one of the country’s top earners of foreign currency and contributors to GDP. Although tourism arrivals in 2012 saw 17 per cent growth on the 9.8 million who arrived in 2011 and a 13 percent growth in income on the $8.8 billion of 2011 revenues, they remained below the record 2010 figures of 14.5 million visitors and $12.5 billion in revenues.
According to the CBE’s recent bulletin, the revenues on tourism industry, one of the country’s top earners of foreign currency and contributors to GDP, declined by 64.7% to US $ 931.1 million during the first quarter of FY13 from July-September 2013, versus US $ 2.6 billion for the same comparable period a year earlier. More»