Egyptian government rules out partnerships with steel producers
Latest Research
Since our Dubai property market update went to press in July 2011 we have been through what is traditionally the quiet time of the year for the UAE, further enhanced this year by the coming together of the traditional leave month of August and Ramadan.
Throughout the last quarter, Bahrain has continued a fragile recovery towards political stability after the period of anti-government hostilities witnessed in the first half of the year.
Quarter 3 is traditionally the quiet time of the year for the UAE, further enhanced this year by the coming together of the traditional leave month of August and the Holy month of Ramadan.
The Egyptian Ministry of Trade and Industry has ruled out government plans to partner with steel makers in the country whose new licences for new factories were withdrawn by a court order last week.
If steel producers refuse to pay the required fees for these licences, banks which have around EGP10 billion in exposure to steel makers because of these licences, will have to step in and manage the factories themselves to protect their investments, said Minister Mahmoud Eissa.
Last week, The Cairo Criminal Court passed a verdict to withdraw work licences from Beshay Steel, Taybah Steel, the National Steel, Garhey Steel, and Ezz Steel, after determining those licences had not been issued legally by members of the former government of the ousted President Hosni Mubarak. Ezz Steel said it was considering its legal options to face any possible impact from the ruling.
It said it was reviewing future investments that had yet to be executed and which could be subject to a temporary freeze.
The Minister denied local media reports about the refusal by these firms to pay the required EGP1.4 billion for the licences, and said they are waiting to review the grounds for the ruling. Earlier this week, Egyptian lenders threatened to stop funding the five companies, which in 2008, secured an estimated EGP6.7 billion in financing provided by around 15 banks.
Your Comments
You must be logged in to add comments.