Egypt’s FinMin to Decide on NIB’s Capital Increase within 2 Weeks

Big 5

Egypt’s Finance Ministry will make its decision within the next two weeks on the capital increase of the National Investment Bank (NIB), said bank board member on Wednesday.

NIB is a state bank managing public investments.

According to Momtaz al-Saeed – the ex-finance minister and board member at NIB, the capitalization of the bank currently amounts to EGP 100 million.

NIB seeks to increase its capital to be at value of EGP 2 billion by the next fiscal year and then to be worth EGP 5 billion within 3 years, he added.

Moreover, al-Saeed stated that the capital increase will be through a direct financing from the Ministry of Finance. That’s why the ministry will determine on the NIB’s capital increase after checking its funding base.

NIB was an affiliate of the Ministry of Finance for 10 years since inception until 2012, when the subsidiary has been transferred to the Ministry of Planning.

The capital increase will be directed to improve the NIB’s financial position, aiming to attract more deposits and savings as a prelude to be transferred into a commercial bank, subject to the Central Bank’s regulations.

Comments
Loading...