A consortium of ten banks is offering a loan of $1.3bn, EGP 10bn, of financing to the state-run Egyptian Electric Holding Company (EEHC) with new terms, reported Amwal al Ghad.

The new loan will be secured without requesting a guarantee for the loan from the Egyptian Ministry of Finance. The loan aims to pay off EEHC’s dues to the Egyptian General Petroleum Corporation (EGPC).

The sources explained that the banks’ new conditions came after the Egyptian finance ministry had decided not to provide a guarantee for the loan and the EGPC was found maxed out reaching its credit limit.

The tens bank are expected to receive EEHC’s reply within this week, the sources added. As pursuant to a former offer, EGPC was supposed to get the loan directly on condition that the EEHC would pay it off.

EGPC is one of the government entities that capture the biggest borrowing share from the Egyptian banks.