Bank extends grace period to Mahalla textile units

03 Jun '11

2 min read

Tareq Amer, President of Egypt's Ahly Bank, has said that the bank has decided to allow a longer grace period to Mahalla's spinning and weaving firms to pay back their loans.

He also said that the bank would provide extra credit to the firms which are affected by current stagnation in the local market, coupled with soaring prices of raw inputs and loss of some export markets.

While in a meeting with Mahalla's factory owners and investors in Gharbiya Governorate, Amer said that the bank has shown its willingness to resort to non-traditional solutions to prop up the industry and to provide necessary liquidity that the firms need to operate.

Further, Amer even called on the Government to relax the restrictions on the textile sector, and recommended that while adopting measures to safeguard the investors in the sector, the Government should consider reducing sales tax on production inputs and equipments.

He expressed his consent to work in association with the businessmen and Government to find out ways to revive the industry.

Moreover, he also proposed, that in order to equip the factories with better technology, a fund should be established, and added that his bank is ready to provide credit facilities of more than LE500 million to revamp the industry.

Fibre2fashion News Desk - India

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