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Sunday, 06 December 2020

EgyptAir seeks EGP 3 bln loan from Banque Misr and National Bank of Egypt

The CEO of Egypt’s national airline said that the loan aims to pay the external debts incurred by the company amid to the coronavirus crisis.

Ahram Online , Monday 8 Jun 2020
An Egypt Air plane (Photo: Reuters)
An Egypt Air plane (Photo: Reuters)
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EgyptAir is currently negotiating with the National Bank of Egypt and Banque Misr to obtain an EGP 3 billion loan, EgyptAir CEO Mohamed Roshdy revealed on Monday.

In a statement to Al-Borsa Economic Newspaper, the CEO of Egypt’s national airline said that the loan aims to pay the external debts incurred by the company amid to the coronavirus crisis.

He also revealed that the external debts of EgyptAir have so far reached EGP 13 billion, adding the losses of the company since the start of the COVID-19 outbreak have reached EGP 3 billion, at nearly EGP 1 billion per month.

In mid-May, the Egyptian Ministry of Finance announced that it would lend EgyptAir EGP 2 billon due to the impact of the coronavirus on its operations.

The government will support the state-owned EgyptAir until it returns to 80 percent of its 2019 operations, the ministry said in its statement.

In early April, the International Air Transport Association estimated that Egypt’s airline industry may face potential losses in revenues of $1.6 billion in 2020 due to the coronavirus crisis.

Egypt suspended international flights in mid-March to curb the spread of the virus in the country.

According to statements by cabinet spokesperson Nader Assad in late May, Egypt is considering a “gradual resumption” of international flights in the second half of June or the first half of July.

EgyptAir is currently operating domestic flights inside Egypt as well as exceptional international flights for Egyptians stuck abroad.

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