Egypt Independent

Cabinet: New Administrative Capital not seeking loans over financial failure

The Egyptian Cabinet’s media center on Thursday denied social media rumors claiming that the New Administrative Capital has borrowed LE20 billion due to financial failure.

The center clarified that it contacted the New Administrative Capital Company, which denied reports over the management obtaining any loans from Egyptian banks.

The company stressed that its financial position is strong and that it has achieved annual profits from land plot sale proceeds to investors, and therefore does not need any loan or external financing.

It added that speculations in this regard are unfounded rumors aimed at undermining the confidence of citizens and investors in this giant project.

According to the company, its budget for the fiscal year 2019/2020 is about LE50 billion from the revenues of land sales, an increase of LE6 billion from the budget of the fiscal year 2018/2019, which amounted to about LE44 billion.

The company pointed out that the state budget did not bear any costs in the establishment of the New Administrative Capital project, adding that the company pays taxes towards the state just as any other company.

The New Administrative Capital Company appealed to all media outlets and social media users to investigate the accuracy of what is being shared, and ignore any anonymous news seeking to spread doubt in the New Administrative Capital undertaking.

Edited translation from Al-Masry Al-Youm