Public companies’ debts to Petroleum Ministry exceed LE 12B

CAIRO – 24 May 2018: The total debt of public sector companies to the Ministry of Petroleum exceeded LE 12 billion for their consumption of petroleum products and gas, according to an official source at the Ministry of Petroleum and Mineral Resources.

The source said that the accumulation of these debts represents a major challenge for the oil sector because it affects the financial obligations of the sector, reflected in borrowing to provide petroleum products to the local market, ministries and the government.

In general, the total debt of the public sector companies to all parties amounts to LE 45 billion, of which LE 8 billion is for spinning and textile companies and about LE 21 billion for the National Investment Bank.

The total debt of public sector companies to gas and electricity organizations reached LE 15 billion to be paid at intervals of three to five years, after a down payment of 25 percent for electricity and 10 percent for gas was made, where adjustments will be paid through holding companies.

Prime Minister Sherif Ismail held a meeting on Tuesday with ministers of petroleum, electricity, finance and public enterprises to discuss the debt of the public companies for electricity and petroleum ministries.

The meeting approved the payment of 10 percent of the debt by the Ministry of Public Business Sector through holding companies; the remaining amount will be paid within 60 months.

Minister of Public Enterprises Khaled Badwi said on Tuesday that public sector companies recorded a total profit of LE 8 billion during the first nine months of 2017.