Bank of Cairo’s former director arrested for loan fraud
Egyptian authorities have taken into custody former managing director of Bank of Cairo, Mohamed Abul Fateh for allegedly securing unguaranteed loan facilities. Case prosecutors are demanding that Fateh’s assets be frozen, reported Al-Akhbar.
According to the report, some $322 million was allocated to four Egyptian businessmen; three of which are currently incarcerated and one running from authorities.
International financial institutions often criticize Egypt’s weak banking sector, public banks in particular. State-owned institutions control nearly 60 percent of the nation’s total banking assets and around 70 percent of the total deposit. Businessmen have received large-scale loans without undergoing the appropriate background checks.
This past November, Egypt’s High State Security Court confiscated the property of 21 businessmen and two bankers after being charged with expediting and receiving improper loans valued at approximately $170 million. — (menareport.com)
© 2003 Mena Report (www.menareport.com)