The National Bank of Egypt’s (NBE) non-performing loans (NPLs) portfolio registered EGP 7 billion at the end of May, retreating with EGP 400 million in two months (April and May), compared with EGP 7.4 billion at the end of last March.
Yehia Abu El Fotouh, head of non-performing loans department at NBE, said the Bank settled EGP one billion debts since the beginning of the current fiscal year till the end of last May, adding 35% of NPLs are of tourism sector and 30% are of industrial sector.
NBE signed a settlement deal with a paper mill in south Egypt that owes EGP 800 million. The settlement states that EGP 100 million will be paid off instantly and EGP 700 million to be paid off in installments over 8 years, Abu El Fotouh said but declined to tell the name of the company.
The value of debt settlements include the settlement of EGP 50 million revolving loan offered to a company offering operating capital finance, Abu El Fotouh added, noting that the Bank is supporting all economic sectors that were hit by the recession Egypt witnesses amid the political instability and security lax.
