Egyptian banks have suspended their financing of tourism projects involving EP 10 billion in investments indeterminately, reported Al-Sharq Al-Aswat on October 16.
The project sought to increase lodging by building enough hotel rooms to accommodate 63,000 additional guests. Banking sources described the funding suspension decision as a temporary, until general economic conditions are more stable. The banks want to be sure that they will receive the correct amount of returns before pumping large credit amounts into any new projects.
Head of the Egyptian Chambers of Tourism Association, Ahmed Maghreby, criticized the banks’ decision calling it narrow-minded. He added his opinion that the current crisis is a temporary one that will pass with time.
The Egyptian tourism sector suffered a 22 percent collapse since the September 11 terror attacks in the USA. The crisis is expected to further deteriorate during the America’s military campaign against Afghanistan. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
