The Ministry of Trade and Industry intends to launch Misr Venture Capital Company with capital of EGP 150m to finance troubled factories within days.
Minister of Industry Tarek Kabil said that the new company will work on structuring the faltering factories to re-operate them. Amongst the shareholders of the company are the Industrial Modernization Centre (IMC), National Investment Bank, Tahya Misr Fund, and Ayadi Company for Development and Investment.
Kabil noted that the company will contribute to facing the consequences of the slowdown in the national economy following the January 2011 revolution, adding that it will directly contribute to the recovery of a large number of troubled companies through the provision of short-term financing mechanisms and the activation of channels of communication between troubled companies and the Industrial Modernization Centre for technical support.
The minister held talks with Hany Tawfiq, chairperson of the board of directors of Union Capital Company for Direct Investment, and Minoush Abdel-Meguid, managing director of the company, as well as Ahmed Taha, executive director of IMC, and Ghada El Gohary.
Kabil explained that the company will begin its work with the factories that have submitted its defaulting applications through the IMC.
The total number of cases believed to be possibly relaunched amounts to 135, including 63 solved cases, leaving 72 companies of which Misr Venture Capital will study relaunching them.
Hany Tawfiq, chairperson of Union Capital, said that the inauguration of the company is an important step towards moving the file of the faltering factories and the reoperation of them.
Tawfiq pointed out that the board of directors of the company will soon be set up. Once formed, the board will set the standards and foundations for the company’s approval to finance the troubled companies and determine the priorities of the financing in order to make the most benefit from the available funding, pointing out that the IMC will be the technical arm through which the preliminary study of companies will be developed to benefit from the services of the company.