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Egyptian Iron and Steel workers could soon be compensated after approval of an EGP 1.3 bn loan: The Metallurgical Industries Holding Company (MIHC), the parent company of Egyptian Iron and Steel, has the green light to obtain up to EGP 1.3 bn in financing from local banks to compensate former workers amid the state-owned company’s liquidation, as per a bill President Abdel Fattah El Sisi approved, according to the Official Gazette (pdf).
Egyptian Iron and Steel will pay its former workers EGP 14k for each year worked — with a cap of EGP 450k — under the terms of an agreement reached in October. Disagreement over the level of compensation had triggered protests earlier this year from factory workers, whose union had requested higher compensation.
Background: At the start of this year, Egyptian Iron and Steel embarked on its liquidation process, which is expected to take up to two years as the perennial lossmaker sells its land assets to pay off EGP 9 bn in debts. The liquidation, which came as part of the government’s strategy to streamline the public sector, also saw the company sell its steel plant in Helwan and spin off its mining operations in a new firm, Iron and Steel for Mines and Quarries, which was listed on the EGX in May.