Parliament approves loan for Super Jet

ArabFinance: Egypts Parliament has approved a draft law aiming to allow the Arab Union Company for Land Transport (Super Jet) to obtain an EGP 800 million loan from a number of Egyptian banks under guarantees provided by Minister of Finance Mohamed Maait.

The loan is necessary to help Super Jet operations inside Egypts New Administrative Capital (NAC).

The loan will give Super Jet the money necessary to buy 120 minibuses and build a garage inside the NAC to serve the first phase of internal transport there, a report by the Parliaments Budget Committee said.

The law will also make it legal for the Finance Minister to guarantee Super Jet as the constitution stipulates that the government can take loans or offer loan guarantees only with prior approval from parliament, the report added.

As regards guaranteeing the loan, Super Jet will offer the Ministry of Finance an in-kind collateral in the form of assets such as lands, buildings, cars, and microbuses, the price of which is equal to the loan.

The committees report explained that Super Jets decision to take a bank loan comes under the instructions of the political leadership, which is doing its best to implement the first phase of internal transportation inside the NAC.

Internal transportation is very important to facilitate the transfer of businesses and government ministries and institutions to the NAC, particularly during the first phase of operations there, the report highlighted.