Last week, the National Bank of Egypt agreed to grant the Egyptian General Petroleum Co. (EGPC) credit facilities of USD 95 million in order to secure its fundamental needs of solar and diesel.
A reliable source in the NBE, said that the bank helps in opening the documentary credits, granting loans and credit facilities to the EGPC periodically in order to assist it in securing the state’s fundamental needs of petroleum products along with its transactions with its foreign partners.
The source added that the total of the direct loan portfolio, which is oriented to the petroleum sector, climbed to EGP 25 billion last April. While during the last period many banks asked the Minister of Finance to guarantee any loans grant to EGPC in the light of reaching its credit limit which is 30% of the lender bank’s capital limits.
NBE is considered as on one of the biggest financiers to the petroleum sector. It agreed during May to endow EGP 1 billion in favor of the General Petroleum Company, one of the companies owned by EGPC, in order to help GPC in its expansions in drilling operations at Ras Ghalib, Eastern Desert and Abou Sinan in Western Desert.