Page 7 - Millenial Finomics Issue 1

70-80% in new bookings of -ciplinary nature strongly links it -yers who are facing negative -the company. The following

Egyptian destinations was an- to other sectors such as hospi- impacts such as the risk of clo- scenarios have been outlined in

nounced during the second tality, food and beverage, trans- sure due to the economic down- which the event of, the financial

week of March, compared to portation, and thus any damage fall of the COVID-19. In order aid will be discontinued. They

the corresponding period last will similarly be reflected upon to apply, applications must be include: the re-operation of the

year. Amongst other dire con- them. Indeed, national airline submitted to the Board of Di- company, an employee finds an

sequences, Minister Antiquities carrier EgyptAir has seen losses rectors of the fund and must alternative job, the lapse of the

Khaled el Anany stated the fol- amounting to EGP 3 billion per be accompanied by a financial entitled time period, evident

lowing, month since it was grounded on report outlining the inability to fraudulent methods have been
March 19th. “Overall, one out pay employee salaries. used to obtain the fund.

“It was a disaster for us, like of every nine jobs in the coun-

the whole world,” he says. try depends directly or indirect- This sum is expected to cov- In further efforts to mitigate,

“We lost around $1bn per ly on tourism,” says Mohamed er 162,939 employees, workers the Egyptian Ministry of Fi-

month and we’re estimating Dahshan, Managing Director from 1530 tourism establish- nance has put forward a new

that we’ll still lose a lot of of OXCON and Fellow at ments, and it has been reported initiative in hope of helping the

money during the coming Chatham House and TIMEP. By that there have been 3800 more tourism industry take steps to-
weeks and months.” April, Egypt’s Central Agency applications for the subsidy wards recovery. With the goal

for Public Mobilization and Sta- thus far. Accepted applicants of of helping tourism and hotel

Additionally, there has been a tistics (CAPMAS) reported that the aid will receive financial aid establishments meet their re-

notable decline in hard currency the unemployment rate has risen equivalent to 100% of their ba- quirements in covering salaries,

returns, which will have a sig- to 9.2% in the second quarter sic insurance salary, with a min- base-level employment levels, as

nificant impact on the Egyptian of 2020. This is a 1.9% increase imum of EGP 600 per month, well as meeting commitments

economy, increasing the current from the rate of the first quarter and will be continued for a time to suppliers, EGP 3 billion

deficit in the balance of pay- of the year and is the highest re- period of 6 months, until the has been granted to the Cen-

ments, which may prompt the corded rate in the last two years. appropriate re-operation of tral Bank of Egypt to provide
government to resort to external the company or the employee 2-year soft loans as a part of the

borrowing. Indeed, the govern- In response to this, the Min- finds an alternative job. It has EGP 50 billion tourism project

ment has already begun seeking ister of Manpower Mohamed been noted that the Minister of launched in 2019. These loans

loans from the International Saafan has announced that dis- Manpower had the authority to vary from 5% interest annually

Monetary Fund (IMF), securing bursement of over EGP 171 extend the period of the grant for small and medium enterpris-

USD 2.772 billion to finance million is underway provided by from 6 months to 12 months or es as well as a reduced interest

state budget deficits. the Emergency Benefits Fund to increase the amount funded rate from 10% to 8% interest
for employees who have not re- according to the ongoing finan- loans for companies operating

The tourism industry’s interdis- ceived salaries from their emplo- cial and economic progress of in fields of tourism, construc-

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