The United Arab Emirates and Egypt agreed that the UAE will fund the purchase of petroleum products to Egypt for a year starting from next September, Egypt will repay that petroleum products worth between $8 billion and $9 billion to the UAE, an official in the petroleum ministry revealed.
He added that the UAE will receive an interest rate of 2% or 3% on the amount of the petroleum products purchased for Egypt.
Egypt will have 4 years to repay and 1 year grace period starting from the date of the first shippment that Egypt receives, the source revealed.
The Egyptian General Petroleum Corporation (EGPC) will repay the UAE in Egyptian pounds and US dollars according to the agreement which will be signed in a few days.
Egypt is scheduled to receive the last petroleum grant from Saudi Arabia by August end.
Source: AlAhram Gate & Arab Finance