Egypt drops plan to merge HDB and state land bank

Reuters, Thursday 26 May 2011

Merger would have created one of Egypt's biggest commercial banks

Egypt's government has dropped plans to merge Housing and Development Bank (HDB) and state-owned Egyptian Arab Land Bank, the central bank's deputy governor said on Wednesday.

The two banks were both being restructured with an eye toward a possible merger sometime before the end of 2012, a move that would have created Egypt's sixth or seventh biggest commercial bank.

"It's not in the plans to merge these two banks," Hisham Ramez said at a news conference, without giving a reason for the change in plan.

He declined to rule out the possibility of reviving the planned merger some day in the future.

Egyptian Arab is Egypt's fourth-biggest state bank by assets.

The government owns over 60 per cent of HDB.

 

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