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Cairo is trying to raise a $1.5bn five-year loan from international banks to pay off receivables owed to international oil firms active in Egypt
According to Egyptian state oil firm EGPC’s own estimate receivables have now hit $6.3bn, up from the previous, end-June, estimate of $5.9bn. According to MEES calculations, based on company filings, receivables are at least $7.5bn (see table and MEES, 8 August), with the discrepancy seemingly due to differing ideas of what is overdue.
With the new loan EGPC expects to bring down the outstanding amount to the oil companies to around $5bn. EGPC hopes improved payments will stimulate oil firms to invest more on exploration and on development of discovered fields. Last December EGPC paid the oil companies about $1.5bn (of which the equivalent of $300mn was in local currency), but despite this receivables have since risen. (CONTINUED - 202 WORDS)
DATA INSIDE THIS ARTICLE
|table||Egypt’S Debts To Foreign Oil Companies*|