One of the most vital approaches to end corruption and embrace a transparent market and economy, the government -represented in the Economic Court- has been executing remarkable efforts to insure a safe and emerging economy, as well, monitor and restrain payments delayed by companies lended from financial institutions. This, in return, would support the progression of Egypt’s developmental cycle and assure a stable transparent economy. Here are the latest cases presented and pledged by the court to provide positive impacts in the money market…
Egyptian Steel fined EGP 38m to The United Bank of Egypt
The Cairo Economic Court of Appeals (First Circuit) fined Egyptian Steel the sum of EGP 38m -along with added interests and late payment fees till the sum is paid in full- in favor of AIB.
The case started when the bank provided the company with banking facilities and loan guarantee, but the company defaulted. Thus, the court, presided by Judge Mohammed Zekri, the membership of counselors Bahaa Mahmoud and Hussein Hamdi, and Secretariat Abram Agaibi, has ruled -in case no. 825 for Cairo economic judicial year 4- on the Egyptian Steel Company to pay the 38m to the United bank.
Unix for Tourism fined EGP 35m in favor of National Bank of Oman
The Cairo Economic Court of Appeal (2nd Circuit) ruled -in case no. 632 for Cairo economic judicial year 6- to fine Unix for Tourism a sum of EGP 35m -along with added interests- in favor of National Bank of Oman.
The case flashed when the bank provided Unix with banking facilities and loans, but the company defaulted. Thus, the court, presided by Judge Yehia el-Banna and membership of Khaled Shokry and Hossam Farouk and Alaa Ibrahim as secretary, ruled on the company to pay the sum mentioned to the bank -8 per cent paid per year.
EGP 7m to Arab Investment Bank (AIB)
The Cairo Economic Court of Appeals (2nd Circuit) fined Marmo Egypt a sum of EGP 7m -plus added interests- in favor of AIB.
The case started when the bank provided the company with cost-plus contracts, but the company defaulted. Thus, the court, presided by Judge Yehia el-Banna and membership of Khaled Shokry and Hossam Farouk and Alaa Ibrahim as secretary, ruled -in case number 297 for Cairo economic judicial year 4- that the company must compensate the sum mentioned to the bank- with 14 per cent paid per year till the sum is fully forfeited.
EGP 11m paid to Export Development Bank of Egypt (EXPA)
The Cairo Economic Court of Appeals (2nd Circuit) fined Short Company for Leather a sum of EGP 11m -along with added interests- in favor of EXPA.
The case started when the bank provided the company with credit facilities and loans, but the company defaulted. Thus, the court’s judges ruled -in case number 69 for Cairo economic judicial year 4- that the company pays the sum mentioned to the bank- with 12.25 per cent paid per year till the sum is paid in full.
EGP 3m to be forfeited by El-Salam Company
The Cairo Economic Court of Appeals (9th Circuit) has issued a verdict -in case no. 435 of 1st judicial year- obliging El-Salam Company for Imports & Exports to pay EGP 3m to National Bank of Egypt.
The bank had lodged an appeal before the Economic Court of Appeals to compel the company to pay the mentioned sum. This came after the company obtained credit facilities and loans from the bank- with a possessory security over a sum of the company›s stocks and securities- but it evaded.
The court, presided by Judge Gamal Mohammed Abdel Hakim, the membership of counselors Mohamed Timor Taha and Sherin Farouk, and Secretariat Abdel-Rahman Mohamed, fined the company the sum mentioned to the bank- and a yield conventional rate of 5 per cent per year till the sum is fully recovered.
