Arab Investment Bank Eyes Settling EGP 200 Mln Debts In Q4

The Arab Investment Bank (AIB) targets to reduce its non-performing loan portfolio by EGP 200 million in Q4 of 2012 which ranged from EGP 750 million to EGP 800 million at the end of last September.

The total value of debt settlement agreements signed by the bank with defaulting customers reached EGP 150 million at the end of Q3 of 2012, said Omar Mostafa, general manager of debt settlement and asset management department at AIB.

Many settlement agreements have been signed recently, thanks to the improved economic scene which has been much better than before, he added.

Debt of about EGP 18 million was settled with a customer in the medical sector who owns assets of EGP 60 million, meaning that the reason behind his default was a compelling one, he noted.

Improving the economic situation will further foster the continuation of industrial and services sectors which inject cash flows to the market and the banking sector, Mostafa concluded.