As Source from the Egyptian General Petroleum Corporation (EGPC) stated that the company has EGP 200b unpaid dues from government ministries and state-owned institutions for providing them with petroleum products and derivatives. The amount consists of EGP 145b that should be paid by the Ministry of Finance, EGP 5b by the national airline Egypt Air, EGP 5b by the Business Sector and EGP 45b by the Ministry of Electricity, as reported Al Borsa.
EGPC is facing a liquidity crisis because of the unpaid dues by ministries and institutions, as the accumulated amounts are enough to cover EGPC’s financial obligation towards banks and foreign companies for three years ahead.
This comes as EGPC had partially paid off it’s outstanding arrears to foreign investors, decreasing the company’s remaining dues balance to $3.3b by the end of fiscal year 2015/2016.
Egypt Oil&Gas reported late September that EGPC’s CEO, Tarek El Hadiedy, explained that the company paid a total of $16.2b and EGP 31.3b in dues to foreign investor for buying their production and loan facilitations. The company aims to inject new foreign investments worth $6.3b during fiscal year 2016/2017. His comments came during the company’s General Assembly that was chaired by Egyptian Minister of Petroleum, Tarek El Molla.