The Egyptian government aims to settle financial and legal disputes between companies and factories on one side and the banking sector on the other side without prejudice to the contracts signed so as to regain confidence in the Egyptian market.
The country’s economic and social development plan for FY 2013/2014 showed that the government targets to solve the problems of the faltering factories mainly spinning, weaving, petrochemicals and wood factories in coordination with the banking sector and provide them with credit facilities from the banks to import production requirements. The number of faltering factories in Egypt is about 400.
Egypt’s banking sector were not so much concerned with providing industrial projects with loans and credit facilities and also declined to provide industrial investments with the required finance for fear they may not be able to repay the loans, the plan showed.
