Egypt’s law makers have approved a loan of EGP 5 billion (USD 318 Million) to the EgyptAir holding company
The funds will come from the National Bank of Egypt and Banque Misr under guarantees from the minister of finance.
According to Ahramonline , the parliament had to discuss a two-article law that allows the minister of finance to issue guarantees necessary to open the door for the EgyptAir Holding Company obtain a loan of EGP 5 billion from the National Bank of Egypt and Banque Misr,” said El-Fiqi.
This came after Fakhri El-Fiqi, chairman of the House’s Budget Committee told MPs that the constitution stipulates that loans granted to holding companies should come through a law passed by parliament
Lawmakers justified the loan due to the impact of the covid pandemic which has left airlines around the world on their knees
“The pandemic dealt a severe blow to EgyptAir’s operations over the last two years, and as a result, the company’s cash inflows suffered a big drop, which has made it difficult for it to meet its financial obligations,” said a report delivered by the parliament’s budget committe
The airlines woes were put into perspective by Amgad Aref, a consultant to the Minister of Civil Aviation
“The losses are estimated at EGP 1 billion per month. But the company is currently recovering and it is planning to increase its fleet from 67 to 107 planes, and the loan will come on time to compensate some of the losses.”
