Egyptian Group”Orascom” on the verge of collapse

Amid the controversy over the decision made by the Algerian Bank to freeze a number of bank transfers whose total value is estimated at $ 250 millions because of “ Orascom Group infringement of the financial laws”, estimates reveal that the loses of the communication “Tycoon” have reached $ 34 millions within the Tunisian telephone provider “Tunisiana” over the year 2009.

• Moreover, its Canadian partner “Underwhite” has reduced the Egyptian Group shares on account of the financial difficulties in addition to the delay registered by Orascom to pay its debts contracted from the foreign banks estimated at $ 5.2 billions. Orascom Telecom owes 510 million Euros to the French group “France Telecom”.
• The financial crisis that Orascom is going through has compelled the group to resort to drastic salaries’ cuts within its Algerian branch “Djezzy” at the expense of the Algerian workforce, who were appointed in replacement of foreign top managers but with salaries tenfold inferior in comparison to their foreign counterparts.
• Orascom Telecom financial crisis is not only due to the Algerian authorities’ decision to impose penalties on the group for rear debts, but also the failure of the group to pay its debts to the French “France Telecom” valued at 530 million Euros, especially after the refusal of the Egyptian authorities to the French bid to take over “ Mobinile” shares in exchange of $5.1 billions.