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Thursday, 10 November 2016

LG opens six month USD 11 mn letter of credit with Banque Misr, asks for more

LG Egypt has opened a six-month revolving letter of credit with Banque Misr valued at USD 11 mn to finance production expanses, sources told Al Borsa. Company sources tell Al Mal that LG Egypt is also pushing to increase that amount to USD 15 mn. LG Egypt is aiming to increase monthly TV production to 90,000, and is looking to increase exports. The company has incurred losses from the FX shortage and has halted sales to domestic distributors until it can come up with a new pricing strategy in view of the float of the EGP, according to the newspaper. The factory in Tenth of Ramadan requires USD 18-20 mn to maintain operations at full capacity, but banks were only providing USD 6-7 mn in August, he added. LG and a number of other electronics companies are due to meet with ICT Minister Yasser El Kady today to discuss the issue of pricing in the sector.

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