The National Bank of Egypt (NBE) has succeeded in supporting a number of failed businesses and reviving their economic activities.
Hisham Okasha, chairman of the NBE, said the bank had injected credit facilities worth around EGP 3.9 billion to help 45 clients, whether they were from the NBE or other banks. , to pay their debts to the banking sector.
He stressed that this important step is part of the bank’s strategy to support existing projects, even in the event of failure. This would be done under the supervision of the Central Bank of Egypt (CBE), with the aim of encouraging development whose positive effects can be reflected in the Egyptian economy in general.
He pointed out that some of these factories play a vital role in the success of development projects, as they are related to the manufacturing of building materials and supplies, which is the cornerstone of all real estate projects. These projects are given priority by the State and the CBE.
Okasha added that 59 factories have reopened with the appropriate production capacity. He pointed out that some of these factories were completely shut down and that some were on the verge of shutting down due to the bankruptcy of their owners and a large cash flow deficit. These factories have the potential to continue to operate with expected efficiency and capacity.
Yehia Aboul Fotouh, vice president of NBE, said that the restart of these factories resulted in an increase in sales volume with a growth rate of 67%, by doubling the production capacity of some factories. It has also resulted in an increase in the export volume of these factories and the opening of new foreign markets to provide foreign exchange earnings and support the national economy.
He added that the bank’s support has been seen in improving the financial performance of these activities, which qualifies them to fulfill their obligations, whether to banks or to raw material suppliers. In addition, machinery and operating conditions have been supplied to some of these factories.
Aboul Fotouh pointed out that the factories that the bank launched were involved in various economic activities. There were factories of food products, medical supplies, metal products, tourism projects, construction and subcontracting materials, metal products, plastic products, clothing, engineering industries and other value-added activities for the Egyptian economy.
He revealed that the bank is currently investigating the flotation of other troubled cases by injecting around 840m EGP into these factories.
Dalia El-Baz, vice president of NBE, said that this step has contributed significantly to providing over 20,000 jobs in various activities and specializations of the projects launched, a role that cannot be overlooked in terms of lowering rates. unemployment.
She explained that the bank’s pumping of these credit facilities has helped maintain a secure source of income for more than 20,000 families, which provides them with social stability. It also eased the financial burden on the owners of these projects and helped them pay off their debts and avoid legal action. These credit facilities are funded after in-depth studies carried out by specialized executives of the bank to ensure the best use of the money injected, in accordance with the rules stipulated by the CBE in this regard.