EGPC negotiating Banque Misr loan to pay foreign oil debts

Egyptian General Petroleum Corporation is negotiating with Banque Misr to secure a loan so as to pay its debt to the foreign petroleum companies.

A source with knowledge Amwal Al Ghad said that EGPC has asked Banque Misr to provide a funding between 6 billion Egyptian pounds and 10 billion pounds to pay the Cooperative Association of Petroleum and Misr Petroleum debt in favour of the international companies.

The international companies have dues of USD 2.4 billion by the end of last June.

Central Bank Governor Tarek Amer had said earlier this month that Egypt plans to repay USD 850 million to international oil companies, without giving a clear timeline. Sources had previously said that a USD 200 million payment would be made in June.

The Finance Ministry has reportedly agreed to issue letters of guarantee for two loans to the EGPC worth a combined USD 850 million.

The funding, which will be used to repay international oil companies, will take the form of three USD 250 mn, five-year facilities each coming from a consortium of the National Bank of Egypt, Banque Misr, and CIB.