ArabFinance: President Abdel Fattah El-Sisi issued Law No. 160 of 2021 authorizing the Minister of Finance to guarantee the state-owned EgyptAir Holding Company, a presidential statement stated.

Under the new law, the Minister of Finance on behalf of the Government is authorized to guarantee the Aviation Holding Company in the long-term financing that the company will obtain from the National Bank of Egypt (NBE) and Banque Misr in the amount of EGP 5 billion, in accordance with the terms and conditions determined by the Minister of Finance by a decision from him.

In October, the Egyptian Parliament has approved a decision by the prime minister greenlighting a law that grants the finance minister the right to issue guarantees to Egyptair Holding Company.

The financing will be used to fulfill the companys external and internal financial obligations.

In 2020, Egyptair obtained a 10-year, EGP 3 billion loan from Banque Misr and Banque du Caire, after it sustained some EGP 3 billion in losses during the covid-19 induced grounding of global travel.

The companys foreign debt is probably in the EGP 13 billion range.

The company has also received an EGP 2 billion loan from the Finance Ministry that will see the government service the carriers debt until its operating capacity reaches 80% of levels achieved in 2019.

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