Egypt’s finance ministry guarantees EGP3 bln funding for national carrier Egyptair

Egypt’s finance ministry will guarantee long-term financing of 3 billion Egyptian pounds ($191 million) from the central bank for the national carrier EgyptAir, according to a law issued by President Abdel Fattah El Sisi.

On the other hand, the presidency issued a separate law allowing the finance ministry to guarantee a 1 billion pound central bank loan for the Egyptian Holding Company for Airports and Air Navigation.

The public purse will shoulder the cost of the loans until the company is able to attain 80 percent of its 2019 operation rates, said Egypt’s finance minister Mohamed Maait has said earlier.

The pandemic affected global tourism, which is seeing declines in the range of 60 percent to 80 percent in international tourist arrivals in 2020. Losses in the sector depend on the speed to contain the pandemic and the duration of travel restrictions and shutdown of borders, according to the Committee for the Coordination of Statistical Activities.