National Bank of Egypt (NBE), the country’s state-run biggest bank, has secured credit facilities of up to 50 million Egyptian pounds (US$6.4 million) in favour of nine defaulting industrial sector clients.
The bank has around 20 defaulting industrial sector clients, Amwal Al Ghad quoted NBE’s executive board member Yehia Aboul Fotouh as saying Sunday.
There are ongoing negotiations between banks in Egypt and the Industrial Modernisation Centre (IMC), aiming to assist defaulting factories, the Egyptian banking official added.
Last June, Egypt’s central bank launched an initiative to encourage Egyptian banks to float defaulting industrial sector clients, by allowing banks to form new loans allocation to be granted to troubled customers, where floating them could be feasible by only 5 percent of the financing value, while adhering to the standards and regulations in this regard.
A week earlier, Mohamed El Sewedy revealed to Amwal Al Ghad that thecentral bank pledged to secure soon around 6.8 billion Egyptian pounds (US$868.5 million) dedicated for faltering factories in the country, following a meeting between Egyptian President Abdel Fattah al-Sisi and central bank governor Tarek Amer.
