Egypt offers incentives to buyers of unproductive companies
The Egyptian government has recently decided to consider offering new incentives to investors willing to purchase failing public sector companies. A report by Al-Sharq Al-Awsat newspaper stated that the Privatization Ministerial Committee recently discussed the new measures, and will present a comprehensive investment plan to the cabinet for final assessment and approval in the near future.
An agreement has already been reached in which holding companies will pay down previous debts of the unproductive enterprises. Additionally, it was decided that they would finance improvements for the work force of these problematic enterprises.
Public Business Sector Minister, Mukhtar Khattab, defined an unproductive enterprise as one whose debts exceed 50 percent its capital value. –(MENA Report)
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