Egypt’s National Investment Bank eyes private partners to unlock value of transferred assets
Bank studies ways to generate returns from assets received in settlements covering EGP 400 billion in financial obligations
Egypt’s National Investment Bank (NIB) is studying partnerships to maximise returns from assets transferred to its ownership following financial settlements with government entities, the Ministry of Planning said on Tuesday.
Planning Minister Ahmed Rostom, who chairs the NIB board, led a meeting of the bank’s Assets Committee to review the transferred assets and discuss proposed partnership mechanisms to maximise their value.
“The state is keen to maximise returns from these assets through partnerships with the private sector and relevant entities,” Rostom said, adding that various proposals and mechanisms were being studied to ensure their optimal use.
Rostom said the assets had been transferred to the NIB following settlements signed in recent months. He credited coordinated efforts among the relevant entities, under the leadership of Prime Minister Moustafa Madbouly, with completing landmark settlements, some of which dated back to the 1980s.
The settlements are intended to resolve long-standing financial issues affecting both the bank and the entities involved, while correcting the NIB’s financial position and enabling it to resume its investment and development role, the minister said.
Maximising returns from the assets would strengthen the bank’s financial position and provide liquidity to support economic development and implementation of the state’s investment plan, he added.
The initiative forms part of the NIB’s ongoing restructuring plan, which the ministry said had helped improve the bank’s financial position, overcome financial and administrative obstacles, strengthen its contribution to development, and ensure the sustainability of its financial structure.
The NIB has signed framework agreements to settle financial entanglements estimated at EGP 400 billion with several entities, including the New Urban Communities Authority (NUCA), the State Media Authority (MASPERO), the Industrial and Mining Projects Authority (IMPA), the Agricultural Reclamation Authority, the Egyptian Agricultural Authority, drinking water and wastewater companies, and New Valley Governorate.
The settlements resulted in the transfer of ownership of a number of assets to the bank, the ministry said.