Planning and Economic Development Minister Ahmed Rostom said the National Investment Bank’s (NIB) Board of Directors is implementing an integrated investment plan based on establishing strategic partnerships with the private sector to ensure the optimal utilisation of assets transferred to the bank’s ownership and transform them into income-generating investment projects that strengthen the sustainability of its financial position.
Rostom witnessed the signing of an agreement to settle EGP 222.7m in debt owed to the bank by New Valley Governorate.
The agreement was signed by Hanan Magdy, Governor of New Valley, and Dalia Mostafa, Acting Vice-Chairperson and Managing Director of the National Investment Bank.
The agreement comes as the culmination of efforts by the Ministry of Planning and Economic Development to resolve longstanding financial entanglements, strengthening the bank’s financial position and creating significant fiscal space for it to resume its development role in supporting the national economy.
Rostom said the agreement translates directives from the political leadership and the Cabinet to reach definitive settlements of accumulated historical debts, with the aim of maximising the role of the National Investment Bank as an effective development arm.
He said the settlement with New Valley Governorate was reached through a flexible mechanism involving a debt-for-land swap covering two plots within the governorate. The bank’s Board of Directors also approved writing off part of the governorate’s debt to accelerate the resolution of the dispute and ease its financial burden.
For her part, New Valley Governor Hanan Magdy said the signing of the debt settlement protocol represents an important step in the governorate’s efforts to reorganise and invest its resources and maximise the benefits derived from its assets.
She said resolving the issue paves the way for reactivating the Housing Fund and beginning the implementation of affordable housing projects to meet residents’ needs and support the governorate’s urban development plans.
Magdy expressed her appreciation for the productive cooperation with the National Investment Bank and the relevant authorities, which helped reach an agreed formula for fully settling the debt. She said the governorate would work during the coming period to transform its assets and resources into tangible development and investment projects capable of generating sustainable economic and social returns.
She added that the governorate is proceeding under an updated strategic vision aimed at maximising private-sector participation in development projects, particularly in renewable energy, agricultural and food industries, the green economy, and infrastructure.
The governorate is also working to prepare investment opportunities and transform them into bankable and implementable projects, helping attract new investment and create jobs for residents.
It is worth noting that the Ministry of Planning and Economic Development’s efforts over the past six months have resulted in the completion of historic financial settlements, some dating back to the 1980s, with a total value of EGP 298.8bn.
The settlements involved major entities, including the National Media Authority (NMA), the Agricultural Reconstruction Authority, the Holding Company for Water and Wastewater, the New Urban Communities Authority, and the Egyptian Agricultural Authority.
The settlements are expected to have a direct impact on the National Investment Bank’s financial results during the current fiscal year, particularly after the bank recorded a turnaround in FY2024/2025, moving from losses of EGP 31bn in FY2023/2024 to a net profit of EGP 6bn.
