Non-Performing Loans Hit 7% By End of FY2011/12: NBE

The National Bank of Egypt (NBE)’s non-performing loans have witnessed a decline by the end of the fiscal year of 2011/2012 registering 7% of the total loan portfolio, compared to 9% a year earlier.

Yahia Abul Fotouh, head of the debt settlement sector at the NBE, told Amwal Al Ghad that the bank has managed to settle debts worth EGP two billion during the FY 2011/2012.

“Consequently, the bank’s non-performing loans went down to reach EGP 6 billion during FY2011/2012, instead of EGP 8 billion during the FY 2010/2011.” Abul Fotouh added

“The NBE targets to make the non-performing loans register between 4% and 5% maximum of the total loan portfolio by the end of the 2013.”

“Settling the debts of one of the paper mills in Upper Egypt have been one of the biggest debt settlement the bank went through during the FY 2011/2012. This paper mill had debts worth EGP 800 million.”

Worth mentioning that, the NBE’s non-performing loans portfolio have witnessed a decrease of EGP 15 billion within the last 3 years. It fell from EGP 23 billion in the end of June 2008 to reach EGP 8 billion by the end of June 2011.