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Thursday, 9 June 2016

LG Egypt reduces production by 60% at TV factory in Tenth of Ramadan

The latest victim of the FX crunch to go public: LG Egypt’s TV factory in Tenth of Ramadan reduced its production levels by 60% in April and May due to USD shortages at the four banks the company works with, according to Al Borsa, which points the finger at Banque Misr, the National Bank of Egypt, Banque du Caire, and CIB. Production fell to 70k units from 120k in March this year. The company received just USD 10 mn in letters of credit from Banque Misr in April and May and is currently in negotiations with CIB and NBE for a USD-denominated loan, an official at LG Egypt said. The company was instructed not to resort to the parallel market by LG in Korea even if it has to shut down the factory, he added.

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