CAIRO: Egyptian banks are on alert to execute a court verdict to withdraw the licenses from five top steel companies, according to the Metallurgical Industries Chamber. The chamber said in a statement that banks have threatened to stop funding these companies, while the contracting companies started to get their dues from the companies. The Cairo Criminal Court passed a verdict to withdraw work licenses from five steel companies: Beshay Steel, Taybah Steel, the National Steel, Garhey Steel, and Ezz Steel. Steel production in these companies is in a state of disorder due to the shortage of funding, the statement said. All Egyptian and international laws of industrial licenses provide that there is no a financial value for giving the licenses; moreover any economic decision should not be taken retroactively, so the decision should be applied on new licenses not old ones, according to the statement. Also, the Egyptian constitution gives no validation to impose duties without consulting the Peoples' Assembly, the lower house of parliament, the statement continued. Around 15 banks funded these companies to an estimated 6.7 billion EGP (U.S. $1.13 billion) in 2008. Studies showed the banks specified the cash funds and the ability of these companies to repay the money, the statement said. The companies signed contracts with other companies to buy the installments and equipment which are worth billions of Egyptian pounds; moreover, the companies started new projects and appointed new laborers. Egyptian Prime Minister Essam Sharaf also inaugurated certain projects several weeks ago. These five companies represent 85 percent of the value of Gross Domestic Product, said the statement, which points out that withdrawal of the licenses could drive great economic loses. The chamber proposed the companies' new ideas to not pay the value of the licenses. It noted that certain owners of companies have foreign nationalities, and may go for international arbitration.
