CBE Offers Industrial Development Bank EGP 1 Bln Loan To Bridge Provisions Gap

The Industrial Development and Workers Bank of Egypt received a loan worth EGP 1 billion from the Central Bank of Egypt (CBE) last week in order to fill the provisions gap.

The bank targets to fill the provisions gap so as to be able to comply with Basel II standards, said Hamdi Azzam, member of the board of directors of the bank, adding that the bank has formed a risk management sector including all efficient cadres.

The bank has injected EGP 75 million in 2011 to strengthen provisions and studies now the value it will inject to provisions from its profit which reached EGP 71 million.

Amwal Al Ghad had earlier reported exclusively that the Industrial Development and Workers Bank of Egypt has delayed increasing its issued and paid-up capital from EGP 500 million to EGP 1 billion because private-sector bodies which own 20% of the ownership of the bank reject to inject more funds to increase capital. Therefore, the bank sought the loan from CBE to increase the capital.