Four Egyptian Banks Competing to Arrange $1bln Loan for EGPC

The four banks which are operating in the banking sector including the National Bank of Egypt (NBE), Banque Misr, Banque Du Caire and Commercial International Bank (CIB) are competing to provide suitable funding offers for the Egyptian General Petroleum Corporation (EGPC) in order to grant them a loan worth $1 billion to repay part of foreign partners’ dues.

Senior sources informed Amwal Al Ghad that EGPC has demanded in the last week from the four banks to provide separate offers in order to arrange the funding and it is expected for the banks to provide the offers within a few next periods.

The source explained that the loan proceeds will be directed to pay part of foreign partner’s dues within five years, so as to pay it through oil shipments which will be exported in the coming years and draws its dues to the banks creditor.

EGPC paid part of its dues to the banks worth EGP19 billion, so the total dues became EGP47 billion, against EGP 66 billion at the beginning of 2011, including EGP 22 billion in favor of NBE and it will stimulate the banks to deal with the authority and to re-open the funds again.

The dues of EGPC have been reduced in the first half of this year to reach $4.5 billion, against $6 billion.

Eng. Sherif Ismail, the Egyptian Petroleum Minister said in previous statements the government is currently seeking to manage $1 billion and half to pay part of foreign company’s dues in Egypt before the end of this year, the rest dues is scheduled during the next years.