Rafah Crossing 'never been closed for one day' from Egypt: PM    Egypt will keep pushing for Gaza peace, aid: PM    Remittances from Egyptians abroad surge 70% YoY in July–May: CBE    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    Egypt's current account gap narrows, but overall BoP records deficit    Al-Sisi urges accelerated oil, gas discoveries, lower import bill    SCZONE signs $52.6m textile industry deals during China investment tour    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    EGX to close Thursday for July 23 Revolution holiday    Egypt, Senegal sign pharma MoU to unify regulatory standards    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Investment ministry in EGP32bn asset-debt swap with National Bank of Egypt, Banque Misr
Published in Daily News Egypt on 25 - 10 - 2014

Minister of Investment Ashraf Salman estimated that his ministry's debts to National Bank of Egypt (NBE) and Banque Misr are worth EGP1.6bn following an untapped lands swap plan involving holding companies affiliated with the ministry in order to decrease those companies indebtedness to banks.
Salman said that "we did not settle on whether we will pay those [remaining] dues in cash or through obtaining land, but it will probably be in cash." The move is aimed at providing liquidity to nine holding companies that represent the government's hand in providing services and basic commodities in order to end a long history of those companies' indebtedness to banks.
"We will soon hold a meeting with NBE and Banque Misr to pay dues estimated at EGP 1.6bn, which represents a historic repayment of these companies' debts worth EGP 32bn through the banks acquiring untapped lands," the minister said.
Ahmed Shawky, general manager and head of the Insolvent Debt Sector at the Arab African International Bank (AAIB), said that the pressures experienced by the public sector companies and accumulating losses, were inherited from prior leadership. This, along with debts to the banking sector, contributed to banks' reluctance to pump new investments in the companies in recent times.
Shawky added that Salman's decision to begin the restructuring process will serve as a new stimulus for the banks to develop strategies to grant credit facilities once more, especially since most banks have plans for credit sector expansion in light of improved economic conditions and the gradual return of cash flows.
He emphasised that the comprehensive restructuring announced by the Ministry of Investment, will not take place without studying all credit cases and determining feasibility and expected losses.
The debts of holding companies affiliated with the ministry before the resettlement operations by former minister Mahmoud Mohieldin took place amounted to EGP 32bn.
The banks received different land plots of various sizes and in diverse locations belonging to the Cotton and Textile Industries Holding Company, Chemical Industries Holding Company, Food Industries Holding Company, National Company for Construction and Development, and Holding Company for Maritime and Land Transport, after their having been relieved of the debts that they were unable to repay.
A banking source who contributed to the asset swap said that there were no obstacles to financing the public sector and its businesses, because its own assets allow for a credit and borrowing capacity of up to $40bn.
"The total value of the public business sector is EGP 80bn. The state did not take an interest in the sector over the past four years, and we are working on reviving the public sector once more because it makes significant contributions to GDP," according to Salman.


Clic here to read the story from its source.