Philip Morris, Egypt’s Eastern Co reach deal over arrears

Egypt’s top cigarette maker Eastern Company announced Wednesday it had reached an agreement with its international partner Philip Morris for the tobacco giant to pay back outstanding debt and make future payments in the local currency.

Philip Morris, which has an agreement with Eastern Company to produce its local brands, halted paying dues in dollars in return for its production last year.

Eastern Company expects $105 million in total arrears dating back to July 2016 to be paid back this month, chairman Mohamed Haroun told Reuters.

Haroun said that Philip Morris will also begin paying for its local production in Egyptian pounds as opposed to dollars beginning this month at a fixed exchange rate of 18 pounds to the dollar through February 28, 2018.

Egypt’s pound was about 15.8 pounds to the dollar on Wednesday.

Source: Reuters