Egypt clears EGP88.3 bln state media debt to National Investment Bank
Egypt signed a framework agreement on Wednesday to settle 88.3 billion Egyptian pounds of debt owed by the National Media Authority (Maspero) to the National Investment Bank (NIB), advancing efforts to unwind decades of financial obligations between state entities.
Prime Minister Moustafa Madbouly witnessed the signing at the Cabinet headquarters in the New Capital. Finance Minister Ahmed Kouchouk, Planning Minister Ahmed Rostom—who is also NIB chairman—and National Media Authority Chairman Ahmed Al-Moslemany signed the agreement.
The agreement is part of a wider effort to resolve historical debts and financial entanglements involving the state-owned bank and government institutions, some dating back to the 1980s. A second framework agreement was also signed, covering 9.8 billion pounds owed by the New Urban Communities Authority (NUCA), bringing the value of the two settlements to 98.1 billion pounds.
Rostom said the agreements will help reset the bank’s financial position and strengthen its ability to play a larger role in development financing. The government’s efforts to clear the old obligations are intended to improve the bank’s financial strength and solvency, he said.
The National Investment Bank reported a net profit of 6 billion pounds in the latest fiscal year, compared with a loss of 31.7 billion pounds in fiscal 2023/24. The results included the impact of several financial settlements, according to the government statement.
Rostom described the swing as a historic turnaround, saying the resolution of outstanding debts and financial entanglements would improve the bank’s financial position and allow it to play a more effective role in supporting Egypt’s development efforts.
The latest agreements bring the value of settlements signed between the bank and various state entities since March to about 294.1 billion pounds, according to Rostom. The counterparties include agricultural development authorities, the National Media Authority, the New Urban Communities Authority, and water companies.
The government has been pushing to resolve cross-holdings and accumulated liabilities among state institutions as part of a broader effort to strengthen public-sector balance sheets and improve the financial position of government entities.
The National Investment Bank, a state-owned development-financing institution, is being repositioned to play a more effective role in funding Egypt’s economic and social development, according to the government.
Subediting: Y.Yasser