The government intends within days to conclude a loan agreement of EGP 50m ($7.1mn) to settle the financials of the one of the main stumbling textiles companies specialised in furnishings production.
The agreement includes 12 banks in coordination with the Central Bank and comes with consideration for the importance of supporting companies that are at the beast of Egyptian industry.
“The loan aims to restart the companies’ production lines gradually,” Minister of Foreign Trade and Industry Mounir Fakhry Abdel-Nour told Al-Hayah newspaper. “A new board will be appointed, headed by the former chair of the Textile Holding Company Mohsen El-Gilany. He is responsible for reopening production lines based on an economic study, aiming to retain the company’s position in the domestic and foreign markets.”
These remarks came during a meeting the minister held with the heads and representatives of 12 banks in order to help the Textile Company in Mahalla. The company ceased production due to its debts to banks.
Abdel Nour stressed that the ministry is seeking solutions for the struggling companies to return them to production, in the interest of both the companies and labour rights. He also referred to coordination with banking sector leaders in offering new financial tools to assist in reopening these companies.
He highlighted the government’s interest in supporting domestic industry, especially “in this critical situation.”
“The Ministry will not hesitate to undertake any decisions maintaining the domestic industry, especially in events of unfair competition due to dumping, trafficking or fraud,” according to Abd El-Nour.