CAIRO: A new holding company worth 500 million EGP will be established by the industrial investors syndicate to rescue 900 halted factories due to bankruptcy, Al-Maal reported head of syndicate Mohamed Al-Gendy as saying on Monday.
“To provide the required finance to restructure the factories, a tangible part of shares will be offered to public subscription at the Egyptian Stock Exchange EGX,” Gendy suggested. “The syndicate will also work to apply other aspects include solving tax problems and offering pieces of land through usufruct.”
Chairman of Egyptian Tax Authority Mostafa Abdel kader will meet with chairman of Egyptian Customs Authority Mohamed Salhawy soon to solve the tax problems investors and local factories faced and find repayment facilitates for said factories, Gendy said.
“To ease the bankrupted companies’ burdens, the state will offer new pieces of land for such companies through usufruct to save large sums to expand their projects and boost their production lines,” CBC quoted undersecretary of the industrial investors syndicate Ibrahim al-Marghany as saying early Aug.
“Restarting the halted projects could help cover heightened rates of unemployment, around 14 percent of the labor force, boost the Egyptian economy, and promote exports,” The Cairo Post reported economic expert Essam Refaat as saying.
“The responsibility of restarting the halted factories lies on not only President Abdel Fatah al-Sisi but also on the government and workers,” he added. “The president’s responsibility lies in drafting solutions to these problems, in addition to finding solutions to the rising budget deficit and rising prices, wages, and the subsidy system.
Additional reporting by Ahmed Shady.