Egypt bank agrees to settle pre-float debts

cairo — Egypt’s central bank has agreed with Egyptian investors to settle credit lines opened before it floated the pound in November, alleviating debts that threatened the closure of some firms.

It agreed with the Egyptian Federation of Investors Associations (EFIA) to settle dollar debts resulting from the exchange rate differences after the pound’s float. Many debts doubled as the pound lost half its value.

About 570 companies will repay the debts in Egyptian pounds over two years with a 12 per cent interest rate, the bankers said.

The agreement only applies to firms with debts that do not exceed $5 million. — Reuters