AAIB, Banque Misr Freeze Negotiations With TMG Over EGP 1.2 Bln Loan
The negotiations conducted between Talaat Moustafa Group (TMG) Holding with a number of banks such as the Arab African International Bank (AAIB) and Banque Misr to receive a loan worth EGP 1.2 billion have been frozen because of the political turmoil in Egypt and its negative repercussions on real estate market, sources said.
Banque Misr rejected to resume negotiations over the loan that will be used to finance the establishment of a mall in Madinaty City, New Cairo due to the current unrest and because the bank awaits the Administrative Court’s verdict in January 16th concerning the appeal raised against the verdict which earlier affirmed the validity of the Madinaty contract signed between New Urban Communities Authority and TMG.
Sources said TMG succeeded in passing the turmoil that followed 2011’s revolution unscathed, as it did not default on its loans, This made banks did not retreat in lending the Group. However, the current conditions made the banks froze the negotiations till the issuance of the Administrative Court’s verdict.
AAIB and the Commercial International Bank (CIB) offered in October 2012 finance worth EGP 855 million for TMG used to finance the Company’s expansions of Four Seasons Hotel in Sharm El-Sheikh.
TMG achieved net profit of EGP 433.436 billion during the first nine months of the current fiscal year, compared to EGP 493.714 million during the corresponding period in the last fiscal year, with a retreat of 12.2%.
