Printer Friendly

NBE targets EGP 1.1 billion reduction in bad debts portfolio.

The National Bank of Egypt (NBE) stated targeting a reduction in its bad debts portfolio by EGP 1.1 billion by the end of the current fiscal year, 2012-2013.

"NBE targets to reduce bad debts portfolio to reach to EGP 5 billion by the end of the current fiscal year 2012-2013," head of bad debts department, Yehya Abou El Foutoh, said yesterday.

Four years ago, bad debts portfolio represented 30 per cent of the total credit portfolio, which the bank successfully reduced to 5 per cent during the previous fiscal year that ended in 30 June 2012.

"NBE applies various techniques to reduce the bad debts portfolio including; debt rescheduling, increasing the bank's stake in defaulting companies' capital and floating defaulting clients," Abou El-Fotouh said.

The bank agreed to settle the debts of The Arab Company for Special Steel's (ACRO), which stood at EGP 1.6 billion through increasing NBE's share in the company's capital, which amounted to 7 percent, Al-Watan newspaper reported 23 October.

"We're ready to increase its capital shares as long as it is for the benefit of all parties," Abou el-Fotouh added.

ACRO steel obtained the EGP 1.6 billion loan from NBE eight years ago, which was to be settled over a 10-year period, though the company defaulted.

NBE's bad debts portfolio shrank during fiscal year 2011-2012,amounting to approximately EGP 6.1 billion after the bank settled EGP 1.7 billion bad debts, Abou El-Fotouh said.

Egypt's largest bank, with a credit portfolio of EGP 110 billion, succeeded in tackling EGP 22 billion in bad debts within a three year period; from fiscal year 2007-2008 to 2010-2011, Egyptian press reported. NBE's bad debts portfolio equated EGP 8 billion during fiscal year 2010-2011, as opposed to to EGP 30 billion during fiscal year 2007-2008.

Daily NewsEgypt 2012

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2012 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily News Egypt (Egypt)
Date:Oct 28, 2012
Words:310
Previous Article:The president and the constitution.
Next Article:The war for Egyptian minds.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters