“DR. Mahmoud Mohie EL Din (Minister of Investment) said that the repayment of the debt during the previous period, has contributed in not bearing the companies business sector of annual interest about 5 billion pounds, and this is according to the bank’s estimates…Dr. Mahmoud has confirmed that settling all the debts of the textile sector has contributed in stabilizing about 60 thousand workers of total 315 thousands in the public enterprise sector…He stressed that companies will not get loans again, that will not able to fulfill them, as happened in the past, as this leads to falling into the trap of debt and defaults again and thus reduce the indicators…The ministry of investment’s indicators pointed out a decline in the loss of the textile companies to 827 million pounds comparing to 2.29 billion pounds annually before the debt settlement…The debt settlement was done in 3 stages through an agreement where the debt was exchanged with untapped land owned by these companies, to reach 32.5 billion pounds of total paid during the 3 stages Owed to commercial banks, public business sector companies. Mr. Mohsen El Gilany (Chairman of the holding company for spinning and weaving) said that a study is being prepared to restructure the whole sector after reducing its debt, where it’s predicted to be finished during 6 weeks to be presented to the minister of investment…Mr. Gilany said in a statement to Al Masry Al youm newspaper that investments needed to the restructuring process exceeds 750 million pounds and will be financed from restructuring fund…“These new investments will contribute in developing the companies performance, which help in transferring it to profits and in case achieving positive results in the two upcoming Successive years then some of these companies will be put in the stock market.” Mr. Gilany added…Mr. Sherif Samy ( Investment’s Expert) said that repaying the debt was the main reasons in improving the loss indicators in the textile sector and which was suffering for years…Mr. Samy stressed on the necessity of studying the company’s position before pumping new investments into it, which will improve the performance of the companies and push it to compete in the markets and compete different countries like China…Adding to that, the companies did not witness a development process of the equipments and machinery from several years ago, so it’s a must to concentrate renovations on developing the equipments..”
Date:7/20/2010
Source:www.cbamd.com