Egypt Independent

Public business sector to cut funding to companies

Restructuring funds tend not to be injected into public businesses, the supervisor of Egypt’s public businesses sector said.

However, supervisor Adel al-Mozi said the holding company for textiles is an exception because it needs LE700 million in annual salaries for its workers.

In statements to Al-Masry Al-Youm, al-Mozi said sources of financing for the fund have run out. He declined to comment on the current value of the fund.

Mohsen al-Gilani, president of the Holding Company for Spinning and Weaving, said the implementation of a study conducted by the company to restructure its factories has been postponed, even though the former investment minister approved it.

He added that the study requires LE750 million from the fund for its restructuring plan, besides a similar amount for salaries, which creates a serious problem for the fund.

Al-Gilani suggested resorting to the Finance Ministry to provide the workers’ salaries, especially in this “critical” stage.