Textiles companies warn of closures without bailout

At a meeting of the Egyptian Chamber of Textiles Manufacturers on Thursday, local textiles companies threatened to close down due to the finance ministry’s failure to carry out a cabinet resolution to support the industry with a LE400-million bailout.

"If the ministry doesn’t pay this sum, 90 factories will close down and over 200,000 workers–in both the public and private sectors–will be laid off," said chamber president Mohamed el-Morshidy.

The cabinet had ordered the government-run Export Development Fund to disburse the amount over the course of 2009 and 2010. But fund officials said the finance ministry had not yet transfered the money.

The trade and industry minister had earlier stated that the money would be transferred in March.

"Every pound given to local producers saves four pounds from imports," said Mohsen el-Jilany, president of the public-sector Spinning and Weaving Holding Company. "Otherwise, smuggled garments will start appearing on the local market again."

Translated from the Arabic Edition.

Related Articles

Back to top button