International institutions help in restructuring faltering companies
Egypt, Economics, 3/19/2002

Egyptian Minister of Public Business Sector Mokhtar khattab said that various international financial institutions would offer easy-term loans for the first time to restructure the faltering companies that have exporting capabilities.

The African development bank offered $ 100 million easy-term loans with an interest of 2 per cent and grace period of five years.

This amount will be oriented for doubling the value of yarn and textile company exports from LE. 780 million to LE. 1,500 million annually, khattab said.

The Minister clarified that the restructuring plans of the 66 faltering companies require LE 7 billion to settle their due debts to the banks, noting that the next three years will focus on rehabilitating yarn, textile and steel companies with total finances of l.e. 3.3 billion.

Meanwhile, khattab said that the privatization program is proceeding ahead and that 13 companies have been sold during the previous six months to an anchor investor.

On the same plane, Minister khattab and Adel El-Danaf, chairman of the holding company for metallurgical industries will soon discuss a report on the year 2002 privatization programme.

The report includes putting up for sale four companies affiliated to the holding company, namely, Sornaga for ceramics, The general company for metals, Shini for pottery and delta for steel.

The report noted that the holding company has been able to sell last year shares valued at LE. 744 million representing 66 per cent of the year 2001 total sales, including 90 per cent of the Egyptian company for gypsum sold to an anchor investor valued at LE 83.2 million.

The report also referred to a leasing deal concluded with a foreign investor to lease a factory affiliated to Misr Aluminium Company for 25 years with a leased value of $ 14.4 million annually.

The foreign lease holder, according to the report, would be committed to conduct development process for the factory, keeping its workers and would buy the factories' requirements from the mother company (Misr Alu. Co.)Free currency.

Furthermore, the report referred to the selling of 12 million stakes of Helwan Cement Company to the Arab Swiss Engineering Company (ASEC) with a total value estimated at LE 661.2 million.

The report also clarified that the Steelco and Metalco companies have been merged completely with the aim of expanding their production capacities, a step to put them up for sale before the private sector.

The report showed that the volume of exports achieved during 2000/2001 reached LE 331 million, excluding agreements for exporting aluminium vaporizers to Iran.

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