Egypt’s National Investment Bank (NIB) and the state-owned Cotton & Textile Industries Holding Company, whose debt is now $565.04 million due to accumulation of interests, should reach a consensus to serve the interests of both, according to minister of public sector affairs Khaled Badawi, who discussed the issue with NIB deputy chairman Mahmoud Montasser.
In an official statement, Badawi clarified that the state-run company can ink a protocol to determine a method for debt settlement within a clear time frame and assign some of its real estate assets to the bank, a report in an Egyptian newspaper said.Egypt's National Investment Bank (NIB) and the state-owned Cotton & Textile Industries Holding Company, whose debt is now $565.04 million due to accumulation of interests, should reach a consensus to serve the interests of both, according to minister of public sector affairs Khaled Badawi, who discussed the issue with NIB deputy chairman Mahmoud Montasser.#
In January, Egypt’s parliament approved a new bankruptcy law to boost the investment climate. The new law regulates the financial and administrative restructuring for failed projects and companies, and abolishes prison sentences in bankruptcy cases, limiting punishments to a monetary fine.
It allows businesses on the brink of bankruptcy to have the option of conciliation with its creditors or of restructuring its financial position. (DS)
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