Electricity Sector’s Borrowings Unshaken By Frequent Power Outages: Bankers
Published Saturday, 11 August 2012 15:41 |
A number of banking experts affirmed that the frequent power outages, that affected negatively most sectors in Egypt such as cutting the power off in the underground last Thursday, will not make banks retreat from offering credit to the electricity sector.
Electricity sector is the largest borrower and it pays off debts regularly. As the sector reached the maximum borrowing limit, it shall resort to alternative financing methods such as bonds, experts confirmed.
Yehia Aboul Fottouh, head of non-performing loans department at the National Bank of Egypt, said the massive power cut that hit the country is temporary and will not affect the sector’s borrowing position.
The current situation of the electricity sector may encourage banks to support the sector through offering credit to electricity production companies so as to solve the current crisis, Aboul Fottouh affirmed. In addition, there are two electric power stations will operate soon, which will contribute to solving the crisis, he noted.
Ahmed Selim, general manager of the Arab African International Bank, said the electricity crisis does not affect the sector’s borrowing position as it is a vital sector, attributing the power outages to the energy shortage and theft of electric cables.
The electricity sector is a promising sector, he said, affirming that the sector shall resort to alternative financing methods other than borrowing from banks such as offering bonds or sukuks when a sukuk law is sanctioned.