Industrial sector’s debt to Petroleum Min. reaches LE 11B in December

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Wed, 28 Feb 2018 - 12:05 GMT

Smoke rises from factories at Keihin industrial zone in Kawasaki, south of Tokyo, Japan, November 11, 2015 -
 REUTERS/Yuya Shino

Smoke rises from factories at Keihin industrial zone in Kawasaki, south of Tokyo, Japan, November 11, 2015 - REUTERS/Yuya Shino

CAIRO – 28 February 2018: The industrial sector’s debt to the Petroleum Ministry reached around LE 11 billion by December 2017, which is the cost of the petroleum products and natural gas the sector used, an official source at the petroleum Ministry said Wednesday.

He said that the biggest part of the debt is owned by cement factories.

Last year, Petroleum Minister Tarek el-Molla stressed on the importance of regular payment by all government entities for their monthly consumption of electricity and petroleum products. He also directed ministries to pay off their debts.

The source said that the Egyptian Natural Gas Holding Company (EGAS) has launched an initiative for the industrial sector to pay its debts in installments up to two years, but the companies have requested a longer duration of installment, a matter that is still being negotiated, the source said.

In light of the Petroleum Ministry’s keenness to encourage local industry and boost investment, Molla announced recently that his ministry has taken some measures to facilitate the payment of the industrial sector’s accumulated debts.

These measures include scheduling debts, owned by the companies as a result of their natural gas consumption, over five years.

The companies can also receive an exemption on all or some of the interest rates on arrears in case they swiftly paid their debt.

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