60 Factories In Badr City Reported Nonperforming
60 factories with value of investment estimated at EGP 600 million in the industrial area in Badr City are reported faltering, which resulted in laying off about 3 thousand workers.
Alaa Alskotai, chairman of Badr City Investors Association, told Amwal Al Ghad that 70% of factories, working in various sectors such as textile, food, engineering, mining and chemical industries, are unsteady in loans’ repayment because they are in financial distress.
Apart from financial distress, administrative problems with ministries of industry, foreign trade and housing, together with workers’ strikes and protests that increased in the last period, lack of liquidity and security lax decreased the factories’ sales and that made some of the factories default in repayment of loans, Alskotai added.
Badr City Investors Association negotiated banks many times to reschedule the debts of defaulters and finance the factories with 100 thousand to one million for each factory which will in turn help them resume production, however banks were giving false promises, Alskotai noted.
All default cases were after the turmoil the followed 25th January revolution which affected negatively factories’ sales.
