As a result of increased indebtedness due to currency differences following the flotation of the pound, Bank Audi settled debts of companies that previously obtained temporary facilities on foreign currencies, according to Mohamed Fayed, the deputy chairperson and managing director of the bank. The Central Bank of Egypt (CBE) granted many banks $420m earlier to settle the positions of companies carrying debts of less than $5m and having annual sales of EGP 500m or less. Banks were to schedule the indebtedness of these companies on a period of two to seven years at an interest rate of 12%. The Egyptian Union for Investors Associations estimated the total debts at roughly $700m, so the CBE allocated amounts equal to 60% of the debt. Some of the companies carrying debts of less than $5m rejected the CBE’s initiative, which expired last week.

Source: Daily News Egypt March 18, 2017 15:22 UTC