Denying an earlier news report, the government will not be liquidating NIB, but is currently working on a restructuring plan said Negm
State-owned National Investment Bank (NIB) won’t be closing after all, announced Ashraf Negm, Vice Chairman and Managing Director of NIB.
Denying an earlier news report, the government will not be liquidating NIB, but is currently working on a restructuring plan said Negm, as part of the government’s new structural reforms announced earlier this year. The bank’s restructuring was announced by the state 3 years ago.
The main elements of the bank's restructuring focus on rescheduling and paying down the bank's obligations according to a clear and agreed timetable, Negm noted.
NIB also plans to resolve financial entanglements with governmental institutions, with Negm adding that “Part of these entanglements has already been completed with a number of government institutions, whereby the bank acquired a number of high-value assets”.
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This would be concentrated on scheduling paying back the bank's obligations in the upcoming period, according to an agreed-upon schedule and maximizing the return on existing investments, he noted.
The bank also plans to resolve financial entanglements with governmental institutions which have been partly resolved in return for valuable assets obtained by the bank.
Some news outlets reported that the bank was being liquidated earlier this week, citing the International Monetary Fund’s (IMF) recent review of Egypt’s reforms, which had mentioned that the country was setting out to “reduce fiscal risks [in part by] winding down the National Investment Bank (NIB), a publicly owned development bank”.
Egypt had agreed with IMF to prepare a plan to alleviate risks created by the bank’s financial position, with the actual number of how much the bank actually owes still unknown.
