The next few months may see further steps to liquidate the entire National Investment Bank, as part of an Egyptian government plan disclosed in IMF documents for its latest review. Within the credit readiness program.
The documents reveal that the Egyptian government settled on liquidating the National Investment Bank, stopping all lending and deposit-taking activities in January 2021.
The plan to reform the situation of the bank, which has been receiving deposits without central bank supervision, aims to gradually reduce the investment bank's obligations over time, through the use of cash, quality loans and government papers.< /p>
The plan also aims to restore equity by exchanging bad loan guarantees for high-quality government assets and issuing bonds to cover any remaining gap.
The documents indicated that, in light of the inclusion of the obligations of the National Investment Bank in the general government debt, the issuance of bonds on the central government to pay those obligations would raise its debts, but the level of debt The year will remain stable.
Government sources told Al-Borsa newspaper that the bank is currently exiting its stakes in its subsidiaries.
The sources indicated that the Sovereign Fund of Egypt is still consulting with the bank to acquire an influential minority stake in e-finance, in addition to its exit from other companies in the petrochemicals and minerals sector. .
She added that the bank is working on concluding exit deals within a period of no less than a year and a half, and a large number of financial entanglements are currently being ended within the debt termination plan.
The sources indicated that the liquidation proposal is an Egyptian proposal and a plan drawn up by the government, about which the Fund was informed.
The National Bank of Egypt suddenly lowered the interest rates on the investment certificates of the National Investment Bank, which was the main source of financing for the bank, to reach 6% for the investment certificate group (B). ) for a year, instead of 9.75% last January, to be marketed since that date for the benefit of Al-Ahly itself.
