Banks To Bailout Faltering Factories

Federation of Egyptian Banks (FEB) considers assigning a committee to study the applications submitted from faltering factories to be refinanced if proven to be serious, said Tarek Amer, chairman of FEB and National Bank of Egypt (NBE).

Such a move will help boost production and spur national economy.

During his meeting today with 6 of October City’s investors, Amer announced that banks do not stop financing feasible projects as long as investors acquire adequate solvency which will enable them repay the installments in order to maintain the money of shareholders and depositors.

Amer added that NBE’s investments in government debt instruments reached EGP 70 million, noting that Egyptian government relies on banks’ investments in treasury bills and bonds to finance the general budget’s deficit.

Amer noted that NBE uses surplus to invest in treasury bills so as to continue funding industrial and productive sectors, asserting that the lender did not reject financing any promising project.

It is worth mentioning that NBE offered EGP 22 billion funds for important industries in Egypt last year.