Massive Hike In Credit Facility For Egypt Textile Mill Modernisation
A consortium of Swiss banks has increased the credit limit of Egyptian government owned Cotton, Spinning, Weaving and Garment Holding Co.
The consortium which includes Credit Suisse, UBS Switzerland and other Swiss banks agreed to increase the existing credit facility from €20 million to a massive €375 million.
The higher credit limit will continue to be benefited from a sovereign guarantee of the Ministry of Finance of Egypt.
“The financing has a term of ten years and received a 95 percent cover from the Swiss Export Risk Insurance (SERV),” Post Online reported.
The purpose of the hike in credit limit is to finance purchase of various additional textile machineries and ancillaries from Swiss and European textile machinery manufacturers.
The hike in credit facility has been extended to support the government modernisation program of the spinning and weaving sector in Egypt.