The National Bank of Egypt (NBE) targets to offer credit facilities worth EGP 200 million to a number of hotels in order to resume their expansions.
Sources said the bank allocated such value for hotels in order to boost tourism sector in the upcoming period. The bank currently conducts feasibility studies for tourism projects.
NBE’s non-performing loan portfolio reached EGP 6.2 billion at the end of Q1 of FY 2012/2013, compared to EGP 8 billion at the end of Q4 of FY 2010/2011. The bank plans to reduce NPLs to EGP 5 billion by the end of the current fiscal year which will end on June 30th, 2013.
The bank will acquire a hospital in Dokki under a debt settlement agreement in partnership with Egyptian Arab Land Bank (EALB) and the Arab Banking Corporation (ABC). The owner of the hospital owes EGP 115 million to the three banks. Sources said 60% of the debt is owed to EALB, 20% to NBE and 20% to ABC.
