Egypt's central bank governor, Hassan Abdullah, and Industry Minister, Khaled Hisham, have launched the "Fund for Restructuring Distressed Industrial Plants" with an initial capital of 1 billion EGP. The fund aims to participate in the equity of distressed industrial plants with promising operational prospects and restructure them to restore their operational efficiency, enhance their growth and sustainability, and increase their long-term value.
The launch of the fund is in line with presidential directives to restart distressed plants and support industrial investment as a key pillar of the national economy. The fund will focus on investing in industrial plants that face financial or operational challenges despite having assets and production capacities that can be developed. A specialized team from the fund will work with the executive management of these plants to implement comprehensive restructuring plans.
The fund's strategy includes restructuring loans, injecting new capital, and implementing programs to improve operational efficiency and enhance governance frameworks. This aims to restore production efficiency, preserve job opportunities, and support the competitiveness of the Egyptian industrial sector. The fund will be managed by CI Capital, with Mahmoud Attallah serving as the fund's manager.
Governor Hassan Abdullah emphasized that the launch of the fund represents a significant step in the state's efforts to support the industrial sector and enhance its contribution to GDP and economic growth. He added that the banking sector is exerting efforts to encourage investment and production, and providing financing solutions to restart distressed plants.
Industry Minister Khaled Hisham stated that the fund's launch is a crucial step in restructuring and operating distressed plants, which is a priority for the Ministry of Industry. He noted that the fund is part of a comprehensive initiative for distressed plants and that applications for funding will be evaluated through the "Support for Manufacturers" platform launched by the ministry.
The minister expressed hope that the fund will help restore unused production capacities, create new job opportunities, and enhance local supply chains and the competitiveness of Egyptian industry. The fund's launch was attended by representatives from participating banks, including the National Bank of Egypt, Bank of Egypt, and the Arab African International Bank.
Key stakeholders, including the Egyptian Industrial Union and the Ministry of Industry's officials, welcomed the fund's launch as a positive step towards supporting the industrial sector. The fund is expected to play a vital role in revitalizing distressed industrial plants and promoting sustainable economic growth.
Key points
- The fund aims to participate in the equity of distressed industrial plants and restructure them to restore their operational efficiency.
- The fund's strategy includes restructuring loans, injecting new capital, and implementing programs to improve operational efficiency and enhance governance frameworks.
- The fund is expected to support the competitiveness of the Egyptian industrial sector and promote sustainable economic growth.
