NBE Receives EGP 250 Mln From Loan Defaulters In Six Months

The National Bank of Egypt (NBE) has received EGP 250 million in cash after signing debt settlement agreements with faltering customers during the first six months of FY 2012/2013.

Sources said the increase in the value of dollar against the Egyptian pound is the result that kept the bank’s non-performing loan portfolio stable at EGP 6.1 billion, although the bank has signed many settlement agreements. This is because some bad debts are in foreign currency.

The bank targets to reduce NPLs to EGP 5.5 billion by the end of the current fiscal year as the lender negotiates with defaulters to reach debt settlement agreements, sources added.

NBE plans to offer credit facilities worth EGP 200 million to a number of hotels in order to resume their expansions and activities. The bank also deferred the debt payments of customers in the tourism sector who owe EGP 3 billion to the bank. The bank divided such debts into two segments; one is delayed for three months and the other is delayed for six months.

In addition, 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.