CAIRO: Mohammed al-Bahi, a member of the Federation of Egyptian Industries (FEI), on Sunday called for establishing a national fund of up to 2 billion EGP ($279 million) for restarting factories shutdown due to bankruptcy and for changing investment regulations to allow loaning to bankrupted factories, Youm7 reported.
“Current investment regulations are considered major obstacles in restarting 7,000 bankrupted factories because they cannot be loaned money,” Bahi told Youm7.
The FEI aims through establishing such funds to provide soft loans with low interest rates to be repaid through profits.
In an April interview with CBC television, Dr. Essam Refaat, an economic expert, recommended that restarting the bankrupted factories should be among the president’s top priorities.
“Restarting the halted projects could help cover heightened rates of unemployment—around 14 percent of the labor force—grow the Egyptian economy and promote exports,” Refaat said.
“The responsibility of restarting the halted factories lies on not only the president but also the government and the workers,” he added. “The president’s responsibility lies in drafting solutions to these problems, in addition to solutions for the rising budget deficit and rising prices, wages and the subsidy system.”
He also said that to overcome these problems, laborers must work hard, stop strikes and sit-ins and take pay cuts.
Additional reporting by Salim Ali