CBE, Industry Ministry launch EGP 1B fund to restructure distressed factories

Arab Finance: The Central Bank of Egypt (CBE) and the Ministry of Industry have launched an EGP 1 billion fund to take equity stakes in distressed factories with the potential to resume and expand production, as per a statement . The fund will target enterprises facing financial or operational difficulties that still have viable assets and production capacity. Its team will work with factory management on plans that may include debt restructuring, capital injections, improvements to operational efficiency and stronger governance. The stated goals are to restore productivity, preserve jobs and increase the businesses’ long-term value. Minister of Industry Khaled Hashem said factories seeking support will apply through the manufacturer support system recently launched by the ministry, which the fund will use to assess applicants. He described the fund as part of a broader initiative for distressed factories and said he hoped it would bring idle capacity back into use, create jobs, strengthen local supply chains and improve the competitiveness of Egyptian industry. CBE Governor Hassan Abdalla said the fund would direct capital toward rehabilitating productive assets and help increase industry’s contribution to gross domestic product and economic growth. He also reiterated the CBE’s and banking sector’s commitment to providing varied financing sources and supporting local manufacturing. The fund’s contributing banks are the National Bank of Egypt (NBE), Banque Misr, Arab African International Bank (AAIB), the Agricultural Bank of Egypt, and the Export Development Bank of Egypt (EBank). Mohamed El-Sewedy, Chairman of the Federation of Egyptian Industries, heads the fund’s investment committee, while CI Capital will manage the fund. The ministry said the system is available to Android and iOS users. Related News